Not in a flood zone but have been paying for ins by mortgage company for years - can I sue to get it back? (insurance, loan)

[carolflood]

My mortgage company sold my mortgage. the new company says they aren't going to pay my flood insurance premium from my escrow anymore. upon investigation, it looks like I am not in a flood zone at all. so, I've been paying all these years for something I didn't need. Can I sue my old mortgage company?

[Dana Anghel]

Flood zone maps are actually updated regularly - people that weren't in a flood zone find themselves in one and vice-versa. It is possible that your home is located somewhere on the line, and used to be a flood zone.
Ask your current mortgage company to verify the flood zone map and send you proof that you are not in it (the government website to look on is FEMA). Take that proof and contact the escrow company to obtain proof of how long the flood insurance has been paid for. Then contact the insurance company with your evidence and talk to them about providing you with a refund.
Your old mortgage company had nothing to gain from you paying for flood insurance, other than protection on their investment. There is the possibility of them making a mistake by placing you in a flood zone..

Good luck!

[bigjake54]

Originally Posted by carolflood

Can I sue my old mortgage company?

You can pretty much sue anyone. Winning, that's the hard thing.

[Irish Eyes]

You don't have to be in a particular zone to buy flood insurance. While it's only required by banks for certain zones, you can still have it if you're outside. It seems like something you could have changed in the beginning but I don't think you can go years without saying anything and then demand the money back.

[homebeyer2013]

Flood Insurance | Flood Maps | Flood Risk | FloodSmart

[imcurious]

Just thank your lucky stars you are not in a flood zone right now.

[CaptainNJ]

Originally Posted by bigjake54

You can pretty much sue anyone. Winning, that's the hard thing.

yeah, it helps to include something like "the guy from the mortgage company touched my private parts" if you want to get some real money.

[RhysNJ]

Forget the lender for a minute - check with the insurance agent that sold you the flood policy. Ask for confirmation of what the zone was when the loan was originally taken, what it is now, and exactly when it changed. There should be copies of your policy declarations on file for each year you had coverage. The first page indicates the applicable zone. Records should be available unless you are looking back past seven years, and a good agency has data well beyond that.

If you were in a Special Flood Hazard Area (A or V) zones you were probably required by the bank to purchase the coverage. If the zone changed to something else, the bank would not necessarily pay attention or alert you to the situation. You might have had a downward change in premium if the zone was changed on renewal by the carrier.

There is always the possibility of an error when the loan was originated; the zone determination vendor (usually Core Logic) may have had a bad address or the property may have been only partially in a Special Flood Hazard Area.

I seriously doubt you will have recourse. Damaging floods happen very regularly in non-Special Flood Hazard areas, and claims are paid. Fortunately, you did not have that happen.

[imcurious]

No agent is going to go through all of that trouble.

Just be thankful you are out of the "zone" and MOVE ON.

[HonestMortgageGuy]

I agree with Dana, probably a map change took place but If your lender required the insurance and you are determined not to be in a flood zone you can get a full refund for the current annual premium if you have not made a claim on your policy. All you need to do is contact your insurance company.
But keep in mind lenders CAN require flood insurance, even if you are NOT in a flood zone, but they can't require flood insurance for a zone you are not in, meaning, for example, if you are determined to be in an X zone, they can not require you be insured for an AE, just for the X zone you are in.
You were probably moved from a Special Flood Hazard Area (SFHA), which requires insurance, to a Minimal Risk Area. To find out ask your old lender for a copy of the original Flood Zone Determination from the flood cert company.
Also, your new lender may have simply have different requirements than your previous lender.