Option One Mortgage Holders: If you were forced or coerced into purchasing an excessive flood insurance policy, you may have legal recourse to seek compensation for the additional expenses associated with this coverage. Class Action.org is investigating claims that certain mortgage companies have been forcing borrowers to maintain or buy flood coverage which is unnecessary, overly expensive, or otherwise excessive. While Option One Mortgage has not been found among the financial institutions engaging in these questionable practices, many homeowners who have borrowed from other establishments have expressed that they were forced into paying the high costs of an unnecessary, excessive or second flood insurance policy.
If Option One Mortgage or any other bank forced you into purchasing or maintaining an overly expensive, excessive or second flood insurance policy, you may be able to seek compensation for the high premiums paid out for this insurance.
Lawsuits for Force Placed Flood Insurance
Consumers may be able to participate in a flood insurance lawsuit if they were forced to purchase or maintain:
A flood insurance policy which exceeded federal requirements
More flood coverage than what was required under their mortgage agreements
A second flood insurance policy after an acceptable policy was refused
A second flood insurance policy even though they were already covered by a condominium association or otherwise
In some cases, it has been alleged that banks who forced placed valueless flood insurance on mortgage holders received commissions for these purchases, which were expensed to the loan holder. The costs of the insurance policy were either added to the mortgage balance or deducted from the consumer's home equity account.
If your bank forced placed an excessive flood insurance policy on your property, you may be able to seek financial compensation. To find out more about the legal rights which may be available to you, speak with an attorney in your area.