B of A Flood Insurance Ripoff

[idea0001]

What is the name of your state (only U.S. law)? California

BofA bought out Countrywide. I get a letter in the mail that said i need to buy an extra $127,000 worth of flood insurance. I owe 47,000 on my home already have 60,000 in flood insurance. They say that my flood insurance needs to be as much as my homeowners insurance. Can they do this? What a rip off. I will never do business with bofa again. Now i will have to lower my hazard insurance so i can afford my payment. My loan docs say that i only need to have enough insurance to pay off the outstanding ballance on the loan. but my deed of trust says they can change insurance requirments anytime they damn well please.

 

[Banned_Princess]

What is the name of your state (only U.S. law)? California

BofA bought out Countrywide. I get a letter in the mail that said i need to buy an extra $127,000 worth of flood insurance. I owe 47,000 on my home already have 60,000 in flood insurance. They say that my flood insurance needs to be as much as my homeowners insurance. Can they do this? What a rip off. I will never do business with bofa again. Now i will have to lower my hazard insurance so i can afford my payment. My loan docs say that i only need to have enough insurance to pay off the outstanding ballance on the loan. but my deed of trust says they can change insurance requirments anytime they damn well please.

1. Sounds to me, like you dont have enough flood insuance. the minimum i would even sell is 100k. Its just so inexpensive, and easier to get then ho insurance..

2. Flood insurance is not at all expensive. dont cover your contents, and get the highest deductable. this is not even as big of deal as you make it seem.

3. youll be happy if there is a flood.

4, pay the 47k off your house, and dont use any insurance.

5. (or) refinance 50k with another company, again.. no big deal.

FEMA sells flood, see attached.

http://www.floodsmart.gov/floodsmart/

 

[moburkes]

This is standard. I'm not sure, unless you find a different "nonstandard" lender, that you'll find what you're looking for. The reason is simple: If a flood destroys your home, and you don't have enough flood coverage to rebuild it, what are you going to do? Are you going to be like many people and stop paying on your mortgage? This is what happens the majority of the time, which is why they require you to insure your home for flood coverage, for the same amount as the coverage on your home.

They don't make any money off the flood policy if you don't buy it through them. So their only concern is that, at the end of the day, your home gets rebuilt so you can continue to pay your mortgage.

 

[idea0001]

I live in the Mojave desert. Insurance should be based on risk. I am a half mile from a no flood zone. I do have enough insurance to cover my outstanding ballance on the loan. B of A is named on the policy. Well I caved in and lowered my home owners insurance. I will have to raise my flood only 12,000. This is crazy! Now my flood prem. will be more than my hazzard. I feel like i'm paying for people who choose to live below sea leavel. I guess that is to be expected, now that the feds bailed out the banks. Its payback! FEMA needs my money. Just another hidden tax!!!!

 

[moburkes]

I live in the Mojave desert. Insurance should be based on risk. I am a half mile from a no flood zone. I do have enough insurance to cover my outstanding ballance on the loan. B of A is named on the policy. Well I caved in and lowered my home owners insurance. I will have to raise my flood only 12,000. This is crazy! Now my flood prem. will be more than my hazzard. I feel like i'm paying for people who choose to live below sea leavel. I guess that is to be expected, now that the feds bailed out the banks. Its payback! FEMA needs my money. Just another hidden tax!!!!

It IS based on risk.