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?

Not always.

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.