I own an apartment on the 30th floor of a building. The mortgage holder (bank) decided that the building is in a flood zone and forced us to buy flood insurance. I called different insurers -- no one wants to sell flood insurance as the building is NOT in a flood zone. Bank then bought flood insurance for us and charged it against escrow.
Now, getting a lawyer over a $800 a year bill is not worth it, unless there is a class action suit possibility. Any thoughts out there?
2007-12-16 03:58:33 · 10 answers · asked by baystreet690 4 in Politics & Government ➔ Law & Ethics
Sure it's a scam, sure the 30th floor is not a likely place for flood damage. I'm asking for suggestions, though -- 10 points to the best!
2007-12-16 04:08:39 · update #1
Find out how much National Flood Insurance Program insurance would cost, purchase your own, and they will cancel theirs. I'm thinking on the 30th floor it should be pretty cheap. My bank thought I had dropped car insurance once and bought a huge policy...they don't look for the best deal.
You may not be able to get rid of the requirement, but you can mitigate the financial hit with a bit of research.
http://www.floodsmart.gov
This next link will help you find an agent who can sell you NFIP insurance. http://www.floodsmart.gov/floodsmart/pages/agentsearch/searchform.jsp
2007-12-16 04:47:45 · answer #1 · answered by Anonymous · 0⤊ 0⤋
a tall building flood and major systems go with it, regardless of what floor you are on.
Wiring, plumbing, heating, ac, elevator, sewage, and other services are located, or have critical parts in the lower floors or in the basement. Remember the people trapped in a grand hotel in new Orleans for a few days? Did it help them that they were well above the actual flood? Did tall buildings suddenly recover because they were tall?
Flood zones change, and so do regulations.
You could have bought, and maybe still can, buy your own insurance. You say no one would sell it, but the bank found someone that could, so you didn't really try hard enough.
You can ask the back for a citation to the changed regulations, and if you want, check them out yourself or have an attorney confirm it for you.
You can find an attorney worth your time remember this is a one time thing bu that 800 bill is forever.
2007-12-16 04:27:37 · answer #2 · answered by Barry C 6 · 0⤊ 0⤋
The bank took the money for the insurance premium out of your escrow money. In order for that to be legal, there has to be some language in your written loan agreement allowing it. You should first read the bank documents connected with your loan to find that language. In all liklilhood it will be clear that the clause does not allow the bank to require flood insurance where the property is not in a flood zone.
So, what do you do with this information? I suggest a two-step process. First, mail a certified letter to the bank referring to the specific clause in your loan agreement and showing that the payment from your escrow money was not authorized, and demanding that they replace the funds within three days (with interest).
If no results, go to your local small claims court and file a simple suit against the bank based on an intentional breach of contract. It's intentional because your letter informed the bank it was wrong and it persisted. The bank will then refund the money, or the judge will make it wish it had done so.
2007-12-16 04:32:31 · answer #3 · answered by alex42z 3 · 0⤊ 0⤋
Yeah....on the 30th floor you should have no problems with flooding, even if it is in a flood zone.
If anything, they should only require it for the first couple of floors.
Sounds like a scam plot between your bank and the insurance company.
2007-12-16 04:03:03 · answer #4 · answered by Stupid Flanders 7 · 0⤊ 0⤋
The bank has no legal right to declare any area a flood zone. This is done by government agencies. Call your local City Hall and ask to talk to the person/department responsible for this type zoning.
2007-12-16 04:11:47 · answer #5 · answered by sensible_man 7 · 1⤊ 0⤋
Is it worth paying $800 or more per year over the life of the loan? Assuming its a standard 30 year loan thats only $24,000 that you are flushing down the drain.
That same $800 per year placed in a savings account with a simple 4% return would net you a little over $44,800 in the same period.
So, basically its either pay it and throw away $45k or fight it and have the potential to earn that same amount.
2007-12-16 04:08:47 · answer #6 · answered by JW.C 6 · 0⤊ 0⤋
Check and see if water damage as a result of a leaking roof or broken pipes are covered in the flood insurance. This may be why they are requiring it.
2007-12-16 04:08:16 · answer #7 · answered by xtowgrunt 6 · 1⤊ 0⤋
I am not lawyer, but the 30th floor issue is not the real one. The issue to me would be wether or not they can legally force this additional insurance on you after the fact.
That would be the question to ask the attorney.
2007-12-16 04:10:26 · answer #8 · answered by wcowell2000 6 · 1⤊ 0⤋
Flood insurance for the 30th floor??????
LOL.....what are they expecting? The end of the world?
2007-12-16 04:04:29 · answer #9 · answered by Anonymous · 0⤊ 0⤋
Do you own your apartment or rent it? That will be a big factor right there.
2007-12-16 04:07:33 · answer #10 · answered by BarbarianKing 1 · 0⤊ 0⤋