Legal Question in Insurance Law in New Mexico

Last year FEMA rezoned my neighborhood as a high flood risk area. Citibank, who owns one of our mortgages, required that we purchase very expensive flood insurance for their loan. My husband and I complied. This year Citibank wants us to purchase flood insurance for both of our mortgages, even the one that is owned by another bank. They said if we don't comply, they will make an estimate of what we owe of the non-Citibank owned loan and charge us flood insurance payable through Citibank's mortgage. Is this legal?


Asked on 11/08/10, 11:59 am

1 Answer from Attorneys
Charles Aspinwall Charles S. Aspinwall, J.D., LLC

What is legal is what is stated in the mortgage and related documents. The property should be "grandfathered" as it existed prior to the imposition of the flood insurance requirement by FEMA, meaning that you may not be required to have such insurance. Obtain legal advice and an interpretation of your mortgage obligations from an experienced civil lawyer in your area. Initial consultations are usually done at no cost - ask first.

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Answered on 11/17/10, 12:12 pm


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