According to a Wells Fargo flood insurance lawsuit, the bank has forced certain homeowners to buy flood insurance in excess of what is required by law and in breach of their mortgage contracts. The plaintiffs allege that they were coerced by Wells Fargo into purchasing flood insurance beyond federal requirements and the amount needed to cover its interest in the home. Because the company allegedly breached their contracts and a law concerning deceptive business practices, homeowners with similar Wells Fargo forced placed flood insurance complaints may have legal recourse to recover the money spent on unnecessary insurance.
Do you have a Wells Fargo flood insurance complaint? If the company forced you to buy excessive flood insurance, you may have legal recourse to seek financial compensation.
Wells Fargo Flood Insurance Requirements
A Wells Fargo forced placed flood insurance lawsuit contends that the bank forced borrowers to purchase excess insurance. Homeowners claim that the bank begins by mailing a notice asking for proof of adequate flood insurance. The bank continues to send additional letters and force-places a high-premium policy or coerces the borrower into buying their own coverage through a private carrier, according to homeowner allegations. Allegedly, the amount of coverage that the bank represents as being required under the National Flood Insurance Program exceeds these flood insurance requirements.
Wells Fargo Flood Insurance Complaints
According to the Wells Fargo flood insurance complaint, the company knew or should have known that the amount of flood insurance forced upon borrowers was unnecessarily and extremely costly. Because the bank allegedly forced consumers to spend money unnecessarily on excess flood insurance, consumers who were subjected to these business practices may be able to file a claim to recover the cost spent on excess flood insurance.