My realtor failed to properly inform me that we would be subject to a mandatory flood insurance policy, which was mandated by FEMA
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UPDATED: Feb 15, 2012
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Insurance Question from Bristol, CT
Asked on 02/15/2012
My realtor failed to properly inform me that we would be subject to a mandatory flood insurance policy, which was mandated by FEMA We specifically asked the realtor what the term "wetlands" meant on the mortgage paperwork. He informed us, "It's probably the little brook that runs behind the property, I wouldn't worry about it" A week before the closing, we had to scramble to come up with $800.00. It now costs us $1,800.00 a year. Was the realtor at fault, is there a statute of limitation??
Answer given on February 15, 2012
While your realtor should have investigated about the wetlands your home is in, they are not necessarily responsible for the lack of knowledge about the flood zone. Usually the seller is responsible to disclose this type of information. In addition, the lender should have notified you of the need for flood insurance in their disclosure statement when they were preparing the loan.Overall, it sounds like the seller, the seller’s realtor, the bank, and possibly your realtor dropped the ball on this. However, unless you would not have purchased the home because it is in a flood zone, there is little recourse for you. FEMA determines the flood zones and all flood insurance policies would be rated the same no matter where you get the insurance.If you feel you would not have purchased the home, then you may have a case against someone, or everyone for the failure to disclose. However, you probably could have gotten out of the deal when they gave you the information, even though it was at the last minute.
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