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Flood Insurance

Consumer Fraud

When a home is in a special flood hazard area (as defined by the Federal Emergency Management Agency), banks require homeowners with a mortgage to carry flood insurance. Under federal law, mortgage borrowers in a special flood hazard area are only required to carry flood insurance in an amount equal to the lesser of $250,000 or the outstanding principal balance of their loan. However, many banks are requiring borrowers to obtain coverage in excess of this amount, and in some cases, have changed borrowers’ coverage requirements after-the-fact.

We have filed several cases against Bank of America, Chase, Citizens Bank, U.S. Bank and Wells Fargo regarding this issue.

If you have questions about whether your bank required you to obtain too much flood insurance, please contact us.