Can you legally be charged for Flood Insurance for a period 3 years in the past?

Question

My mortgage company recently notified me that I am now required to have flood insurance due to the new FEMA remapping of my neighborhood. What I didn't notice at first is that the letter was dated for this year, but the period that insurance was requested for is 3 years in the past. They have automatically taken money out of my escrow account to cover the premium, and also have the matter is 'under investigation' and probably a mistake, but is this even legal? They told me that 'had something happened, they would have covered me...' Can they really charge me NOW, for an insurance policy that didn't exist 3 years in the past?

Please answer if this is in your realm of knowledge!

Answer 1

You're going to need to pull your original loan papers.

IF when you took out the loan, you were NOT required to carry flood insurance, then they can't make you add it. If there is a provision for a revision, that would subsequently make you carry flood insurance, there's no doubt a notification period - and they apparently have violated that.

Your loan is under the ORIGINAL terms. Now, if it was originally requiring flood insurance, and someone there missed it on the paperwork, and you signed that you will carry flood, then yes, they can "back rate" you for those three years.

HOWEVER. Unless the original contract has a provision in it, for your property BECOMING a flood zone during the loan term, they can't make you buy it.

Additionally, putting "forced placement" flood coverage on the property doesn't cover YOU one bit! It only covers THE LOAN BALANCE OWED TO THE BANK.

So, there isn't enough info to answer this, except you ARE doing almost everything you need to, in contesting this. But DO pull your loan papers and READ EVERY WORD. Feel free to bring them to your homeowners agent to help you with it, if you want. They should be willing to help.

Answer 2

I don't beleive they can, but is this the first notice? Did they require it 3 years ago and you ignored it?

You can't get insurance for 3 years in the past. They would not pay for claims that happened before you signed up for the insurance.

Keep on them and insist that they are wrong. Check with the state Insurance commission in your state if you don't get satisfaction.

Answer 3

I feel for you this really ticks me off about FEMA. You can dispute this is you want to pay for a private land survey. I contacted the city and they told me that my property was NOT in a flood zone but Well Fargo still required me to purchase it anyway. Personally I think Fema is making money off of us to make up for all of the disasters recently. I think that is ridiculous that they can make you pay for something in the past. I would fight that one for sure if I were you. Good luck.