Chase Home Finance Chase Mortgage REQUIRES FLOOD/HOMEOWNERS INSURANCE OVER TWICE THE BALANCE OWED THEM, CHANGES TERMS OF LOAN AFTER THEY BUY FROM ANOTHER LENDER! COLUMBUS, Ohio

Financed home through Century Mortgage Co.   Financed $124,500. 

Within 2 weeks received letter that our mortgage had been purchased by Chase Home Finance. Soon after received a letter informing us we had insufficient flood coverage even though we had flood coverage of 125K. I was told that because we chose to have homeowners for  287k that we were required to have flood coverage for 80% of that amount. I asked why they required coverage for more than they had invested in the home and was told they wanted to insure that if the home was a total loss I would have enough to rebuild after the mortgage was paid. 

I questioned how Chase could change loan terms that I had with Century. I was told my loan documents gave them that right. The sentence they alluded to read "This insurance shall be maintained in the amounts (including deductible levels) and for the periods that Lender requires."

As if that wasn't upsetting enough...I was told if I dropped my homeowner coverage to the loan amount of 125K, then I could drop the flood coverage to that amount as well. Huh? I have spoken with multiple reps at Chase and have asked repeatedly why they care about my future if I want to insure my home for more but not if I want to keep my homeowners coverage at the loan amount. They have no answer. Am I the only one who realizes how CRAZY this is?

That was a year ago. Last week I receive a letter indicating my flood insurance was inadequate. I contacted Chase thinking it was a clerical error because Chase pays for my flood insurance from my escrow account. They informed me they had bought additional flood insurance on my behalf because my homeowner's coverage had increased to 299K due to inflation. They never notified me before purchasing the policy. 

The home involved is up for sale. I tried to lower both home and flood insurance to the 125K since it is empty anyway. FEMA, who insures my flood policy, will not lower my coverage until my next renewal period, which is next August.  My insurance company will not lower my home policy to less than 214K.  Now I am required to have flood insurance of 171K (80% of 214K) on an empty home that has not flooded in almost 100 years and on which I only owe 124K. This coverage costs $2000 annually!

How does Chase get away with this????