Is it legal for my mortgage company to mandate my flood insurance coverage amount?

I live in a 100 year flood plan and I have flood insurance. I was paying about $450 flood insurance premium a year. Bur for the past then years, my flood insurance premium has gone up each year. That because my mortgage company Wells Fargo each year demands a higher coverage amount. Now my flood insurance coverage is over $200,000 a year, which is twice as much as what I owe the mortgage and twice more than my home owner’s insurance coverage. Is it legal for Wells Fargo to do so? Thanks.

Asked on June 2, 2009 under Real Estate Law, Illinois


MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

Possibly.  It is called forced place insurance.  If you feel you may have an issue, you may actually need to challenge the flood map.  Get a flood map review from the federal agency involved in flood plans. 

Also, contact the Illinois Dept of Financial Regulation.

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