Forced into Purchasing Excessive Flood Coverage?
Last Updated on June 27, 2017
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Washington Mutual Mortgage Holders: If you were coerced or forced into buying an excessive flood insurance policy, you may have legal recourse to seek financial compensation. Our website is investigating claims that certain mortgage companies have been forcing loan holders to maintain or buy flood insurance policies that are overly expensive, unnecessary or otherwise excessive. While Washington Mutual has not been named among the mortgage companies participating in these questionable practices, many property owners who have borrowed from other banks have complained that they were forced into paying the high costs of a second, unnecessary or excessive flood insurance policy.
Lawsuits for Excessive, Force Placed Flood Insurance Coverage
Any borrower may be able to participate in a forced placed flood insurance lawsuit if they had to maintain or purchase:
- A second flood insurance policy even though they were already covered by a condominium association or otherwise
- More flood coverage than what was required under their mortgage agreements
- A flood insurance policy which exceeded federal requirements
- A second flood insurance policy after an acceptable policy was refused
Allegedly, some of the banks which forced placed valueless flood insurance on mortgage holders received commissions for these purchases, the cost of which was expensed to the borrower - either by being added to their mortgage balance or deducted from their home equity account.
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