Unfair Rate Hike

[Tom D.]

I just bought a duplex for $97k that I'm living in. The mortgage company's appraisal was for $116k with a replacement cost of $177k, which seems about right. I had to pre-pay for 12 months of coverage, but I got a fair price so I didn't really question why coverage was for $383k.

I used a mortgage broker so a few weeks after closing the mortgage was transferred to a big bank. I was expecting that, but I wasn't expecting another insurance bill. The bank wants coverage for $409k, and their appraisal was for a replacement cost with debris removal totaling $478k!

:protest:

The bill is due Dec. 24th - Merry Christmas to you, too!

I can afford the bill, but it's ridiculous: the coverage is for more than double the rebuild cost, I can't shop around because I've already pre-paid, and the bill is retroactive to the closing date. Is there some way to contest this appraisal? Has anyone ever had to deal with something like this?