Forced & Backdated Flood Insurance
Question Details: My bank issued me a notice on 9/16/09 that I was required "In accordance with the terms of your mortgaget" give them proof of flood insurance within 45 days. My current mortgage has been in place since 2004 and was not required to have flood insurance at the time. I have contacted the bank to contest which zone my home is in. The bank has been unable/unwilling to direct me to the person or organization that made the determination for them. I was notified that since a policy is not in place that not only will they execute a policy but will back date and charge me from 9/16/09. Is that legal?
Insurance Law Law Answers
Dealing with banks and insurance companies can indeed by a hair raising and hair pulling experience. Certain types of mortgages - Freddie Mac and Fannie Mae for example - do require that flood insurance be part of the package, so to speak, in order to benefit form the mortgage programs. If you have this type of mortgage maybe it was an oversight in the beginning.
If, however, you are sure that you are not so required I would do two things: send your bank a letter by certified mail requesting proof of their new request. Ask them to be specific as to the page and line of your mortgage document you signed and any laws or regulations upon which they rely. I would also contact your insurance company and speak with them.
The final thing I would do is to contact the Massachusetts Attorney General who deals with consumer protection on issues of insurance and banking. They will be able to answer some questions for you or point you in the right direction. Good luck.
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