Posted on: 25th Oct, 2010 01:50 pm
I have a good friend who purchased a home 6 months ago. She knew that the home was located in a flood area. She pays $230/ Month in Condo Association Fees which originally (6 months ago covered the flood insurance on the property). She just received notice from her mortgage company that they were going to purchasing more flood insurance on her property to the tune of 1,500 dollars / year. Can a Mortgage company who approved your flood insurance policy 6 months ago determine that the flood insurance is not adequate?
An extra 100 dollars/ month isn’t easy to scrape up for flood insurance. She may not have purchased the property if this was the case 6 months ago.
What recourse does she have?
An extra 100 dollars/ month isn’t easy to scrape up for flood insurance. She may not have purchased the property if this was the case 6 months ago.
What recourse does she have?
Hi bbice!
Welcome to forums!
The mortgage company can buy a flood insurance policy for the homeowner if it feels that the existing insurance policy is not sufficient for the home. I can understand that it is not easy to cough up $100 every month. Your friend can inform the lender about her situation and check out if the lender can help her in this regard.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
The mortgage company can buy a flood insurance policy for the homeowner if it feels that the existing insurance policy is not sufficient for the home. I can understand that it is not easy to cough up $100 every month. Your friend can inform the lender about her situation and check out if the lender can help her in this regard.
Feel free to ask if you've further queries.
Sussane
I am in a similar predicament. I purchased my home 4 YEARS ago and it turns out the flood insurance company wrongly classified my zone. I was just notified that my premium will increase from $395 to $3000 a year. I was misled. I would never have purchased this home if I knew that. It's not like I am at the beach - it's a modest, working class area. I am trying to work with flood ins. company as far as minimum requirements, with my mortgage company to re-fi or modify the loan, and I've written to my congressman. It's just outrageous.