Me and my husband purchased a home in 2007 in Connecticut and are just discovering that the home was in a high risk flood zone A. The previous homeowners checked no to this on their disclosure and our appraiser marked us in the classified us in the wrong zone as well. The company my mortgage lender ordered our flood certificate with just admitted they didn't use FEMA maps to determine our flood zone and therefore misinformed us and the lender as well. So now we are stuck with a high in a high flood zone and being forced to pay a high premium flood insurance. Please advise with any legal recourse we can take.
1 Answer from Attorneys
You can probably sue the former owners, but you'll have to prove they knew the property was in a flood zone and intentionally misled you. You probably can't sue the company issuing the certificate or the appraiser, as they were working for the bank, not you. (The law says you lack "privity of contract" with them, although you may qualify as a known third party beneficiary - legal technicalities that I can't determine without more facts). You certainly may have a claim against the lender; after all, it's their screw-up, not yours. They should absorb the flood insurance cost, but you may have to sue them to get relief.