I received a letter 1/30/08 that Countrywide now demands that flood insurance coverage be equal to homeowner insurance amounts. They insist that I nearly double my coverage or they will place their own insurance on my home and send me a bill.
When I signed for my mortgage, I agreed to flood insurance in an amount that would cover the amount of my loan. My mortgage is $92,000. I have maintain flood insurance in the amount of $133,000 since then.
At my first phone call, the cust service rep said this increase was mandated by FEMA. I called FEMA. They new nothing about the increase except that lots of Countrywide customers had called and faxed, etc.
Countrywide admitted then this was an internal thing, and that it was now policy and that I just had to follow along. I explained to them that my loan amt. Was completely covered by the insurance amount already in place, and they had no business dictating anything above that amount. They told me it was to "protect" me. I have been doing what my contract required, and now they are changing it, just because they can, and stick me with the bill.
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