Consumer complaint received 2021-08-13
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: Rocket Mortgage, LLC (CT)

XX/XX/2021 : XXXX XXXX calculated " Estimated Reconstruction Cost '' ( of XXXX XXXX XXXX, XXXX XXXX, MA, XXXX ) at {$170000.00} ; Homeowner 's Insurance policy ( with XXXX XXXX XXXX -- XXXX ) with coverage of {$200000.00} with " Additional coverages included '' based on " Increased replacement cost on dwelling. '' That {$200000.00} coverage was the minimum homeowners coverage that XXXX XXXX would write, and is " based on '' the " estimated replacement cost of {$170000.00} '', but NOT that it is the replacement cost ; XX/XX/2021 : Effective date and notice of payment for one year 's flood insurance with XXXX XXXX with coverage of {$170000.00}, based on " Estimated Reconstruction Cost of {$170000.00} '' ; Quicken Loans accepted this coverage as meeting its requirements in order to proceed to closing which occurred on XX/XX/2021 ; XX/XX/2021 : Quicken Loan sends " Lender Placed Flood Gap First Letter '' saying that the flood insurance coverage should be {$200000.00}, citing deficiency of {$24000.00} ; XX/XX/2021 : I send a fax to Quicken Loans with letter dated XX/XX/2021, noting that its " Lender Placed Flood Gap First Letter '' is incorrect, forwarding the a copy of " Estimated reconstruction cost of {$170000.00} '', and noting that any amount in excess of the reconstruction cost of {$170000.00} '' is incorrect, according to the guidelines of XXXX XXXX from [ https : XXXX ] -- " Determining the Amount of Required Flood Insurance Coverage The minimum amount of flood insurance required for first mortgages is the lowest of -- 100 % of the replacement cost of the insurable value of the improvements ; -- the maximum insurance available from the XXXX ; or -- the unpaid principal balance of the mortgage loan. '' The fax included a copy of the Estimated Reconstruction Cost of {$170000.00}. 

XX/XX/2021 : Quicken Loans sends me a " Lender Placed Activity Cancelled Letter '' and then immediately contradicts this notice with a " Lender Placed Flood Gap First Letter '' which is a carbon copy of its XX/XX/2021, notice, ignoring my fax of XX/XX/2021. 

XX/XX/2021 : Quicken Loans sends me a " Lender Placed Activity Cancelled Letter '' and then immediately contradicts it with a notice ( of the same date ) -- '' Lender Placed Flood Gap First Letter '' -- saying my current coverage with??? " does not provide sufficient coverage '' even while it notes that coverage must be the minimum amount as noted in the bullet point above. 

XX/XX/2021 : Quicken Loans sends me a " Lender Placed Flood Gap Reminder Letter '' ignoring my XX/XX/2021, letter, and its own citation of XXXX XXXX guidelines, which I am attempting to bring to its attention. 

XX/XX/2021 : I send another letter to Quicken Loans observing, as I did in my XX/XX/2021, letter, that its " Lender Placed Flood Gap First Letter '' is incorrect, citing the XXXX XXXX guidelines once again -- the same ones it cites in its " Lender Placed Flood Gap First Letter ''. 

XX/XX/2021 : QuickenLoans ( now Rocket Mortgage? ) ( ignoring my letters and the XXXX XXXX requirements that it itself cites ) sends me a 'Lender Placed Flood Gap Policy '' which evidently is charging me {$340.00} for an increase of {$24000.00} in my flood insurance coverage. Unfortunately, they sent this notice -- '' Residential Property, Excess Flood Coverage, Additional Insured Endorsement '' -- to the WRONG insurance company. My flood insurance is NOT with XXXX XXXX XXXX XXXX, but is with XXXX XXXX XXXX -- with which I have adequate flood coverage!!!!! XXXX XXXX XXXX holds my homeowners ' insurance policy, which has no relevance to flood coverage. 

PLEASE NOTE : Quicken Loans is persistently IGNORING the actual Estimated Reconstruction Cost of the property, which is plainly {$170000.00}. ( Flood insurance up to that coverage amount was in place at the time the mortgage closed on XX/XX/2021. 
INSTEAD it prefers to note that the Homeowners Insurance says it is based on increased estimated reconstruction cost, which DOES NOT mean that {$200000.00} IS the Estimated Reconstruction Cost but rather that its {$200000.00} MINIMUM COVERAGE is arrived at by bumping up the estimated reconstruction cost to its {$200000.00}. 
My homeowners ' insurance has nothing to do with my flood insurance. 
Somehow, Quicken Loans is being willfully dense about this issue. 
PLEASE clarify this simple issue for them, and tell them to cease and desist with its attempts to force me to obtain higher coverage for flood insurance. I have already called XXXX XXXX and notified them of Quicken Loans error and informed them that I would NOT be increasing flood coverage with them. XXXX XXXX understood, noting that most people who get these unreasonable notices ultimately give up. However, it turns out ( see XX/XX/2021, letter ) that they are trying to get my homeowners ' coverage ( with XXXX ) to be increased by {$24000.00} FOR FLOOD!! I will try to call XXXX and observe to them that Quicken Loans/Rocket Mortgage 's XX/XX/2021, " Residential Property, Excess Flood Coverage, Additional Insured Endorsement '', has been sent in error.