Consumer complaint received 2025-11-19 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: WELLS FARGO & COMPANY
State: CO

Complaint narrative:
On XX/XX/XXXX, shortly after paying off my mortgage, I received a homeowners insurance bill showing an annual premium of {$8500.00}. This was the first time I realized that my premiums had increased to such an extreme amount. The premiums were being paid through my mortgage escrow account managed by Wells Fargo, so XXXX XXXX was withdrawing these funds without my direct involvement or awareness of the escalating costs. 
Excessive premiums far above market norms. 
My home is a XXXX sq. ft. single-family residence built in XXXX. I have been advised by another insurance professional that the premiums XXXX XXXX charged were drastically higher than typical rates for homes of similar size, age, and location in XXXX. I started my homeowners insurance with them in XXXX  for a yearly premium of {$1500.00}. 
I suspect that XXXX XXXX may have : -Overstated the replacement cost value, -Incorrectly applied wildfire or risk scores, or -Added endorsements or optional coverages I never requested or authorized. 
These issues could explain the unusually high premiums. 
-Lack of transparency while premiums were paid through escrow. 
-Because premiums were paid indirectly by my mortgage servicer, Wells Fargo had a heightened responsibility to ensure I received proper notice. That did not occur.

I trusted both my mortgage servicer and my insurance company to act in my best interest, especially since I am not an expert in insurance or escrow management. As a school teacher and a long-time homeowner, I relied on Wells Fargo and XXXX XXXX to clearly disclose major changes that impacted my finances. 

When my escrow payments increased over the years, I reasonably assumed it was due to modest changes in property taxes or typical annual insurance adjustments. My bank statements listed escrow for insurance and taxes, but they never specifically alerted me that my homeowners insurance premiums had skyrocketed to {$8500.00} a year. I believe most people in my position would have assumed the same, especially new homeowners who trust their lender and insurer to be transparent. 

The fact that I was able to secure new coverage yesterday for {$1900.00} a yearwith better coverageshows just how extreme and unjustified my previous premiums were. That price difference is so drastic that it raises serious questions about whether I was misclassified, overcharged, or simply not informed the way I should have been. 

I dont want this to happen to anyone else. I believe there should be ethical and legal safeguards that prevent insurance companies and mortgage servicers from allowing premiums to increase to unreasonable levels without clear, direct communication to the homeowner. At minimum, consumers deserve full transparency and plain-language notification so they can make informed decisions.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation