BECKLEY – A couple is suing JPMorgan Chase Bank after they claim it misrepresented that they did not need to have a flood insurance coverage policy.
Elvin Stanley and Sandra G. Stanley built their home in Rupert in 1999 and their home is located in a Special Flood Hazard Area Zone A, meaning that the Federal Emergency Management Agency requires flood insurance coverage, according to a complaint filed Dec. 20 in Greenbrier Circuit Court and removed to federal court on Feb. 9.
The Stanleys claim they maintained flood insurance coverage until approximately December 2010, when Chase canceled the flood insurance policy on their property and refunded them the amount of the premiums they had paid.
Chase determined that the plaintiffs’ property was in Flood Zone X, where no flood insurance was required, and, unbeknownst to the plaintiffs, no flood map amendment had occurred and their home still remained in Zone A.
The Stanleys claim in reliance on Chase’s representation that no flood insurance was required, they did not maintain flood insurance on their property.
In June 2016, a flood occurred and approximately 13 inches of water entered the lower level of the plaintiffs’ split-level home, where the dining room, a bed room and a bathroom are located, according to the suit.
The Stanleys claim approximately four inches of water entered the main level of their home, which also caused substantial damages to their personal property.
Following the flood, the Stanleys applied for disaster assistance from FEMA and they were denied because they had failed to maintain the required flood insurance, according to the suit.
The Stanleys claim they appealed the denial, explaining that they did not have flood insurance because their mortgage company, Chase, had instructed them that none was required. FEMA denied the appeal as well.
As a result of the defendant’s conduct, the plaintiffs are unable to obtain disaster assistance from FEMA to make the necessary repairs to their flood-damaged home, according to the suit.
The Stanleys are seeking compensatory and punitive damages. They are being represented by Sarah K. Brown, Bren J. Pomponio and Daniel F. Hedges of Mountain State Justice.
U.S. District Court for the Southern District of West Virginia case number: 5:17-cv-01231
