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onthebay · 01-12-2010, 10:21 AM

I had the same issue when my mortgage was sold to another bank. The original mortgage company didn't require it. The new company said that it was required as a condition of the mortgage.
Since I figured I already had a mortgage with them and it seemed like they were changing the rules after the fact I more or less ignored them. Big mistake. They signed me up for their flood insurance at about $2500.00 per year. Since they included in the mortgage I would be in default if I didn't pay it. I was able to get cheaper flood insurance through my agent for half the price which was still twice as much as my regular homeowner policy.

I have shoreline on Pickerel cove but am about 20 feet higher in elevation. The elevation change on the Paugus bay side is even greater.
I wasn't in a floodzone but I was abutting a floodzone. Well the floodzone was the lake. Try telling that to a rep in the midwest who doesn't have a clue. Anyway it was a long process and fight but eventualy it was dropped as a requirement.

You may want to get a policy now to get the mortgage and fight it later. I was able to get some of the premium back when it was determined it wasn't needed.

01-12-2010, 10:21 AM	#23
onthebay Senior Member Join Date: Sep 2005 Posts: 114 Thanks: 0 Thanked 3 Times in 2 Posts	Flood Insurance I had the same issue when my mortgage was sold to another bank. The original mortgage company didn't require it. The new company said that it was required as a condition of the mortgage. Since I figured I already had a mortgage with them and it seemed like they were changing the rules after the fact I more or less ignored them. Big mistake. They signed me up for their flood insurance at about $2500.00 per year. Since they included in the mortgage I would be in default if I didn't pay it. I was able to get cheaper flood insurance through my agent for half the price which was still twice as much as my regular homeowner policy. I have shoreline on Pickerel cove but am about 20 feet higher in elevation. The elevation change on the Paugus bay side is even greater. I wasn't in a floodzone but I was abutting a floodzone. Well the floodzone was the lake. Try telling that to a rep in the midwest who doesn't have a clue. Anyway it was a long process and fight but eventualy it was dropped as a requirement. You may want to get a policy now to get the mortgage and fight it later. I was able to get some of the premium back when it was determined it wasn't needed.