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I hope everyone who maintains a flood insurance policy reads this comment...

Let's talk about forced place flood insurance.

When the big flood hit in 2010 I had a $150,000 dollar flood insurance policy that I wasn't having a problem affording.

When I signed my mortgage note with my local bank the flood insurance clause on the note stated that I was to maintain flood insurance coverage on the 'lessor of'.... either the amount of the loan or the replacement cost value of my home. Which ever was LESS.

I was happy that the clause read that way because I could not really swing a flood insurance policy based on 'replacement cost' which was $250,000.

So I agreed to get the mortgage thru this local bank and signed the note back in 2004.

In 2012 the local bank contacted me and said.. guess what!... We now require you to maintain flood insurance on the replacement cost value of your home rather then what you owe us.

They also went on to say that if I chose NOT to get my flood insurance policy upgraded from $150,000 coverage to $250,000 dollar coverage they would get a policy themselves for my house and I would be responsible to pay for the policy.

So like it or not, I was 'forced' into obtaining a policy for $250,000 coverage.

When the big flood hit in 2010 my home received 9.5 ft of water forcing me out of the house into a camper for over a year in my driveway while my entire house was reconstructed from the ground up.

At that time my policy was still based on the loan amount so my policy limit was $150,000 dollars.

I rebuilt my entire house on just $130,000 dollars provided to me via my flood insurance policy agent.

I had more then enough money to rebuild the entire house and do not understand why I was forced to increase my policy coverage to $250,000 by my local bank.

Not once during the entire time my house was being rebuilt did my bank suffer any financial hardships. I have always paid my monthly payments to them since the start of my mortgage in 2004 as well as maintained a 800+ credit score.

I don't think it's right that banks do not stand behind their mortgage contracts.

Many call what they did a 'breech of contract' or 'bait and switch' deal.

They get me in and tell me I only have to provide them with a $150,000 dollar policy to cover the loan amount at time of 'signing' (that's the bait) then later.. force me to upgrade my policy (the switch) to full coverage replacement cost of my home.

Is anyone reading this that can do something about what they did?

Has this happened to anyone else in Warwick, RI by any chance?

A search on the internet terms similar to these will display just which bank I'm talking about.

class act lawsuit Rhode Island bank bait and switch flood insurance policy breech of contract

When you see who it is you won't believe it.

I believe this same bank just settled a class act law suit involving 100's of customers of theirs, pertaining to unlawfully charging customers for over draft fees.

I have contacted this banks flood insurance underwriter's department asking them to please allow me to maintain a policy for the amount of the loan (which I can afford) rather then full coverage replacement cost value and they have flat out denied my request.

They just tell me.. we decided to change our policy and we are not making any exceptions for anyone... PERIOD.

I am retired on a fixed income now and can not pay these enormous flood insurance premiums my bank has forced me into paying.

I'm being forced right out of my house.

I contacted the attorney general's office and they said they do not offer assistance with bank related issues but referred me to FDIC Consumer Finance department.

For those of you interested their website is at: www.consumerfinance.gov

If you file a complaint with the FDIC they will investigate the complaint.. contact the bank and either resolve the issue or get an explanation as to why they decided to 'breech their signed contract' to the home owner.

I am currently in the process of filing my complaint with them accordingly and will not stop at the FDIC if I am not satisfied with the end result.

If you've been forced to UP your flood insurance poicy against your will by your bank, you TOO should do something about it.

Don't just sit back and be pressured out of your home because of financial stress.

From: Soaring flood insurance seen sinking values

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