Wells Fargo Mortgage
Lender Required Additional $103,000 Flood Coverage Beyond Loan Amount
- 10-17-2007
- 25
I can NOT believe what I'm reading about WFHM. We bought our home in June of 06. We knew it was in a flood zone, so of course we had to purchase flood insurance. We didn't mind as we knew we had to. Our insurance agent told us we need as much insurance as the amount of the loan. So, if our house went down the creek the mortgage company would still get their money.
We were also told that ANY flood insurance company will not pay to rebuild your home if it's lost in a flood. Flood insurance will pay "actual cash value" at the time the home is lost due to a flood. We purchased a $85,000 policy at closing. $85,000 was our home loan. Now, here we have been in our home for over a year.
When our years anniversary took place we got a letter from WFHM saying we need to purchase an additional $103,000 flood policy. If we didn't purchase it within 45 days they would purchase it for us. I couldn't believe this as flood insurance doesn't rebuild. I have been on the phone with supervisors from WFHM over and over again.
I have asked them to show me where in the closing papers it says they can force me to pay additional flood coverage that I will never use as the additional $103,000 won't pay to rebuild my home. Our house payment has gone up by leaps and bounds because of this. They can't show me, all they say is "these are the rules". My insurance agent even went rounds with them, and nothing happened. I have asked that WFHM send me papers stating this raise in insurance, and nothing comes in the mail. They have NOT answered any of my questions, nor proven to me how this can happen.
So, here we are paying for a policy that is now $188,000 and we will never see $103,000 of it if our house floats down the creek. How in the world does this happen to people? How can they legally do this to people? Only WFHM is benefiting from this, we sure are not.
Company: Wells Fargo Mortgage
Country: USA
State: New Jersey
City: Newark
Phone: 8662348271
Site: www.wellsfargo.com