I was shocked when Wells Fargo Bank, my mortgagor, demanded a tenfold increase in my flood insurance premium from around $300 per annum to over $3000. They claimed the flood zones had been revised when even the flood insurance company, American Banker's (Florida) admitted a mistake. When I complained of this to the usual faceless Wells Fargo customer service rep, their statement was, "The flood zone is what we say it is."
I then realized something funny was going on, as with an education in science and some experience with the US Geological Survey's Water Quality Division, I knew full well the flood risk is almost nonexistent where my house is sited.in fact, to my knowledge, the bay I live on has never flooded (local rivers do not have enough volume even when they spill over their banks). The entire huge bay would have to rise by TEN FEET over the high tide to flood my home! Thanks to a report on RIP OFF, I am now informed of the nature of this scam.
One comment is that flood risk is determined by scientific information (stream, bay and ocean hydraulics) not the fiat of a bank. Premiums in insurance are supposed to be set to balance possible losses. A third comment is, "The banks have not stopped stealing, folks, and we have to get organized to stop them."
I am very interested in a class action lawsuit.
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