Wells Fargo Flood Insurance Scam
For seven years Wells Fargo has accepted the HOA insurance policy (including flood) on our condo. Seeing a way to scam the consumer and add to their coffers, Wells Fargo informed us that we had to provide $182,500 in additional flood, and if we did not, they graciously offered to supply us with a policy at, I am sure, a hugely inflated rate. We have a one bedroom condo, but they did not differentiate between our smaller unit and two and three bedroom units. Also, our mortgage is two thirds of what they want us to insure the condo for.
To add to this story, I have been given four different answers by Wells Fargo reps. One said we were covered by the HOA, then a letter saying we were not, then another said we were, and the last said our personal policy (to the tune of $1,600) would be OK.
Here is a link to a NY Times article that speaks about what Wells Fargo and others are doing:
Review about: Wells Fargo Mortgage.