On March 28, 2014 Bank of America was hit with another class action on behalf of a nationwide group of borrowers who were subject to the bank’s force-placed insurance policies. The complaint, filed in Federal Court in the Northern District of California alleges that Bank of America force-placed flood insurance policies on a San Jose, California woman’s home, creating unnecessary and unwarranted coverage. In accordance with the terms of her mortgage and federal law, the plaintiff was forced to carry flood insurance equal to the amount remaining on her mortgage from 2004-2012 because she did purchase coverage herself.
As alleged in the complaint, in 2012 Bank of America then cancelled the plaintiff’s current force-placed insurance and informed her that she would then be required to carry a policy that covers the resale value of her house as opposed to just the remaining balance on her mortgage. According to the complaint this meant that the Plaintiff’s force-placed insurance payments went from approximately $150 a month to over $2,500 a month.
Our law firm is continually investigating force-placed insurance claims against a number of banks and mortgage companies nationwide. If you believe that you have a force-placed insurance that exceeds the required coverage, was duplicative of another policy you already carry, or is for a hazard not present in your location, you may be entitled to compensation. Contact Audet & Partners, LLP for a free consultation by calling (800) 965-1461, or complete and submit our confidential case inquiry form on the right side of this web page.