Chris and Analia DeHayes lost their Ruskin, Florida home to flooding during Hurricane Helene two years ago. What followed was a nightmare that had nothing to do with the storm, but everything to do with their bank.
The couple had flood insurance through FEMA’s National Flood Insurance Program, which caps payouts at $250,000 for residential structures (1). Tampa Bay 28 reports the couple received nearly that amount, but because they had a mortgage, their insurer made the check out to both them and their lender, Chase Bank (2).
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This standard industry practice (3) gave Chase significant control over the money, and though the bank released $141,000 to the couple, it withheld nearly $100,000 for more than a year.
In the meantime, with construction on the damaged home underway and costs elevated because the home had to be raised under FEMA’s 50% rule, the couple had to find a way to keep the project moving…