Did you receive a letter from your mortgage lender letting you know they are required to track the payment of premiums for flood coverage and if the policy lapse’s they will charge you for forced-placed coverage?
My letter arrived this past week and I will visit the credit union that holds the mortgage or call the mortgage center just to make sure I’m in the clear for not purchasing flood insurance. The form letter wasn’t very helpful. The general website for flood insurance was given, but if you want to confirm if you are in a flood zone and required to purchase coverage the exact website you want to visit is FEMA Flood Map Service Center. My address hasn’t been mapped yet. Putting it another way; if I need flood coverage there are a lot of people in deep water!
The credit union and I have a shaky history about homeowner’s coverage. I’ve received several years of annoying letter’s letting me know I would be enrolled in forced-placed coverage in 30 day’s if I didn’t come forward with proof of insurance. When I finally got the insurance agent involved it was discovered the automated proof of coverage form was being sent to the wrong address and evidently not being forwarded to the mortgage division.
If you ever get caught in a double coverage situation because communications failed it will cost you time to straighten out the duplication, but not extra premiums. The lender is now required by law to refund to you any premium and related fees charged during overlapping coverage. I’m opting for a little investment of time now to avoid the process of undoing mistaken actions later.