You pay alot of money to buy flood insurance. Your lender should be satisfied if your limit of coverage is greater than or equal to your loan – Right?
A client from Bainbridge PA had their loan papers audited by the lender. The lender determined the property to be in high-risk flood zone A. Our client had been Grandfathered to lower-risk flood zone C.
The mortgage company wanted the flood insurance policy to be re-rated. This would increase our client’s flood insurance premium an additional $750.
The insurance company made correction to the flood insurance policy to indicate the property qualified for the “grandfather rule”.
Mortgage company satisfied. Client relieved to save $751 on his flood insurance.
More information on flood zone discrepancies can be found here.