The seller could be correct that the property is not in a flood zone but the bank wants to be safe rather than sorry in case there ever is a problem. If the seller was not forthcoming with the correct information, however, you may have recourse. You would need to consult an attorney to determine the extent of damages you could collect. It may be just the cost of the insurance, which is probably less than the attorney fees, but worth the cost if the home is in a flood zone because even though you can buy insurance, the resale of the home would also be affected and perhaps you would be due some compensation for that difference in value.
Good luck to you.... more