Somewhere when all of this started you must have signed something that made it legal for them to take the money, because they cannot take money out of your account without permission. I pay 95% of our bills through automatic draft, I had to fill out a form, giving them our banking information, account number, which bank etc. and sign it. Maybe since it is mortgaged, you're forced to keep the flood insurance like we have to insure a financed car to protect the loan company. There must have been something you signed at the closing of your home.

The mortgage itself makes it legal for them to take the money. When you sign a mortgage, you agree to maintain all necessary insurance on the property. You also agree that the mortgage company can purchase insurance on the property -- at your expense -- if you don't maintain the insurance you are required to maintain.

Most flood insurance policies are sold through private insurance companies but are actually backed by the government through the National Flood Insurance Program.

The first thing I'd do is call the company you're buying the flood insurance through and see why they keep sending out this letter. Is there a misunderstanding as to the due date of the premium?

My first house required flood insurance, and at the time there was an option to purchase a three-year policy for a discount. I'm not sure if that's still available, but maybe you could try it. At the very least, it would spare you this annual hassle.

I think I have found out what is messes up but I am furious. I got in touch with the supervisor at the morgage company and she stated due to fema our flood ins had to be included in our payment. I told her is hasen't been for a few years and in the contract it states we will pay for it our self. The bank raised our house payment 110.00 for 700.00 a year flood ins figure that out. Any way my husband went to the bank and they told him that if we took our fire ins off the payment we would be able to pay the flood and fire ourselves. I'm so confused. We only owe a small amount on our home and some one was saying to get an equity loan and pay off our house and we wouldn't have to have flood ins. Does any one know the ups and downs of an equity loan and how to get in touch with fema or any other options we might have. Thanks Debbie

Let's get past the mortgage and go right to the real problem, flood insurance and FEMA! Our second home was in a flood zone, BUT we had a survey done which showed that the property is in the flood zone, BUT the house is 6.1 feet above the flood plain. We then filed for a LOMA (letter of map ammendment) with FEMA. This is basically having FEMA change the requirements for your home. You must have flood insurance if your property is in a flood zone AND the insured, mortgaged property is IN the flood zone.
It cost us about $300 to get a survey and do all the paperwork required by FEMA, but then the insurance company is required to reemburse you your policy payment. So for a cost of $300 for us we got back $600! Well worth it over the years!
What I was told is that FEMA just goes around the area and says this, this and this are flood zones and it is up to the property owner to correct the map by way of a LOMA. Now, you might really be truly in the flood zone, but it is worth it to have it checked out!
There are people near us that advertise that they can help you get out of paying flood insurance and they will ONLY charge you $1,000. You might want to put some effort into this.
Kathy G in MI

When I lived in a flood zone, I WANTED to have flood insurance. I was glad I could get it, and the cost seemed pretty reasonable compared to what I stood to lose. I'm surprised to hear that people advertise to help people get out of having it, I thought the whole reason the government started the program in the first place was to provide coverage that private companies found too risky to offer. Maybe I'm naive, though.

Re: the OPs question about home equity loans, I used one to refinance my previous house. It worked out very well, I got a great rate and had zero closing costs. You need to have a certain percentage of equity in your home (at least 50%, I think), and you should double check that the interest is tax deductible (it was for me).

Here in the Pittsburgh, PA. area, we have lots of flood plains, and pains. There are many major streams flowing down thru numerous valleys, into the 3 rivers that meet in Pittsburgh.
This past September, when the hurricane came here, we didn't feel many effects from wind, but the rains soon overwhelmed the area,s streams, and quite a few towns got major damage from flooding! This was all within a 10-20 mile radius of PGH.!
In the immediate suburbs, the creeks had been hemmed in by walls, and close channels. Low bridges made dams when debris closed off the stream beds!
After all was over, there was considerable damages done to everything! And, it was surprising how many families and home owners either didn't have flood insurance, or had let it lapse! Most who didn't, lost it all!
The State and the U.S. Government sent fact finders in to help out! Some folks were offered loans to get back on their feet! At high interest rates! Some got nothing!
And, what was their excuse for not having flood insurance?
"Oh, it hasn't happened in these areas for as long as we can remember! And, flood insurance is too expensive!"

This mindset kind of reminds me of those folks who rent an apartment or store front, move in all of their worldly possessions and then, the place burns down! Along with everything they own! And the owner of the property? His insurance covered his stuff, but not the renters!
I live on the highest hill near Pittsburgh! If any flood ever gets up to me, the rest of you folks had better have an ark! So, i'll take my chances and not buy flood insurance, but if the flood ever reaches my home, it won't matter much! There won't be any reason to save it----
And, if you live near a river, lake, crick, stream, or canal---you'd better have insurance, no matter how much it costs! Remember--there's always the first time for everything!
by: Rustyj

In my area, flood zones were recently redrawn. They did that by taking aerial photos and figured which areas were low lying and put them in the flood zone.

You can get a QUALIFIED surveyer to do a survey of your property to find out how high a level of risk of flood you have. The survey does precise measurements of the elevation of your property, something that the aerial photos cannot do with that much precision. (I think they call it a flood elevation survey.) Not all surveryers have the specific expertise to do this. Once you have the report of that survey, IF IT IS FAVORABLE, you can then go to the flood insurance company and ask them to revise the insurance premium. If your property is low risk for flood, your premium may go down. If it is found not to be in the flood zone (that happens sometimes), you may be able to drop the flood insurance coverage, provided your mortgage company agrees to that.

Before going ahead with the survey, it may be worth considering how much flooding there was in your neighborhood the last time there was a really heavy downpour, especially in a hurricane that came nearby. If there are known flood areas near your property, but your property has never been flooded, that may be a reason for re-examining your risk with a survey. But consider also that the risk of flooding may have changed in recent years due to changes in the face of the land and how creeks meander and how much soil erosion has occurred. So just because your property has never flooded does not mean it will not in the future. In our particular case, we are NEAR a flood zone, but not in it. So we do not have to carry flood insurance. But we chose to anyway, just in case.

My step son has flood insurance and I doubt he would have had it if the mortgage company and not insisted. His forty year old home had never been flooded until two weeks ago. Water was a foot deep in his home. All the sheet rock has to be replaced and every thing sitting on the floor was ruined.

I have the same problem with GMAC financing I own several homes in the same zone none of my other mortgage companies are bothering me with this nonsense. I think GMAC has found a way to profit by this.The problem may not be FEMA , but greedy lenders.I hope to find out from other readers if we can find a common thread here.