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windstorm insurance

Complaint Rating:  100 % with 2 votes
100% 2
Contact information:
Fontana, California
United States
I purchased my home in 2006 for 180k got a 5.875% interest rate with taxes and insurance included with my monthly mortgage payments. I have been on time every month since I purchased my home . I have not asked for a refinance or a modification. My recent monthly statement from Citimortgage has a new insurance "windstorm insurance." I called Citi mortgage Mortgage servicing and was transfered to Citi mortgage Insurance because the department I called couldnt help me. The lady I spoke with was very rude insisting this is mandatory. I asked when I was informed, she claims a letter was mailed to me in May of 2009 indicating this new requirement - a complete lie. I asked if she could send me where it states in my loan documents where this is required, she would not. I asked if she could forward the law or where it states it is mandatory she would not. I asked to speak to a manger, there was no manager. Apparently this insurance has been optional - like earthquake insurance - for sometime and now all of the sudden in December of 2009 Citi mortgage is requiring my loan to have it. The additional "windstorm insurance" is $4000 a year, this increases my current payment by 150%. I called my current insurance company and asked if they usually write "windstorm hazard polices" in Fontana, CA, they said no. I called my friend who is an agent he too says he rarely writes these polices but can write me one if I need to have it for my policy for about under $1000 a year. I called my mortgage broker, who is still in business, and asked if he sells "windstorm insurance" with his mortgages, he said no. After I explained my situation to him, he laughed in disbelief and asked me if I was serious. I am very serious, this is no joke. I spoke with over 30 home owners today and not 1 of them pays this type of insurance, nor is it mandated by their mortgage lenders.

I think I am being Scammed here. Is anybody out there having the same occurrence? Let me know, my attorney is taking a look into it tomorrow.

-Blown Away
Fontana, CA.
Complaint comments Comments (2) Complaint country United States Complaint category Banks


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A  23rd of Jan, 2010 by    0 Votes
We live in Brazoria County, Texas and CitiMortgage forced us to get windstorm insurance. Our escrow went from from $400 to $800 per month. We already had home owners insurance.

We initially protested purchasing windstorm insurance because the premiums + plus deductibles were nearly the cost of new roof (i.e. pointless to purchase). Thus, CitiMortgage purchased windstorm insurance 'on our behalf' for nearly $9000 and wanted the money in 10 days. Needless to say, we purchased windstorm insurance from our home insurer for $1000. CitiMortgage billed us for the interim but never showed us proof of purchasing windstorm insurance.

The story goes on but, the point is, CitiMortgage executives are using hardworking people to pay for those who could not pay by bilking us with excess escrow payments - this also stops or slows your extra payments. They don't want that house paid off - while making interest off of our escrow.

Prediction: our next escrow requests will be for tsunami insurance, flood insurance, home owner association dues, earthquake insurance and possibly meterorite insurance.
A  12th of Jul, 2010 by    0 Votes
I just got a letter from CitiMortgage saying the same thing...If I don't arrange for windstorm insurance, they will do it for me. This scares me. I have a letter drafted telling them to NOT add their insurance with copies of emails from my original lender saying this insurance is OPTIONAL. I will be sending said letter certified signed receipt so they can't deny they got it.

In the meantime I have a call in to my insurance agent to find out what this insurance will cost me locally. After reading about your experience, I plan to go ahead and buy my own insurance just to circumvent future problems with them, and so they don't benefit financially.

Mary from Hawaii

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