Flood Insurance Fraud. What Can be Done about It?

[advent]

Since I purchased my home in Ajo, Arizona in 2005, I have been victimized by non disclosure by both Citi Mortgage and The Hartford Insurance Co, which underwrites the flood insurance sold to me by Rightsure in Tucson.

The flood insurance is required because FEMA maps were changed in 2004 due to a old Phelps Dodge bridge that clogged with debris in 2003 and sent rain water down streets to the east of the bridge. In 2006, the bridge was replaced with one three times the capacity, after a study and report showed it to be the causal factor. Nevertheless, much to my dismay, 6 YEARS after the new bridge was completed, FEMA still has my property in flood zone A.

Since I purchased the home in 2005, neither Citi Mortgage nor The Hartford (or their agent, Rightsure) has disclosed to me my rights as a consumer under the Federal flood insurance law which reads:

"Under federal law, mortgage borrowers in a special flood hazard area are only required to carry flood insurance in an amount equal to the lesser of $250,000 or the outstanding principal balance of their loan..... "

The current outstanding balance on my mortgage is $25,000. Nevertheless, on 6/20/12, I received another premium notice from Hartford Insurance Co showing coverage of $79,200 with a premium due on 8/19/12 of $563.00, NO WHERE in their correspondence do they indicate that I must only cover the amt of the outstanding balance of the loan. I doubt that I am the only consumer that has written the Arizona Department of insurance. Is not this non disclosure blatant fraud?

To me, this is either intentional or negligent fraud, completely ignoring Federal Law. And they have been doing this since I purchased the home, with a conventional 15 year note, and a beginning balance of $44,000.

The Hartford and Rightsure of Tucson have been stealing money from me since 2005 and I'd like to know how I can make them refund the money they defrauded me out of.

What can I do?

[barend31]

real world answer?

you can consulte with attorney
to see IF u have understanding of
real issues and IF there is a ice
cubes chance in AZ desert of bring
case to court on your money.

u are upset over a few thousand $$, yes?
a court case can/will cost 10-50 times
that . think b4 u start.

Yes do contact state board of insurance
to find out what is possible. Don't
bet on much happening.