We recently purchased a new construction home in Cedar Hill, TX, but our experience has been marred by a significant issue caused by our mortgage broker. The MLS listing on Zillow had an incorrect zip code that didn’t match the actual zip code on our deed. I brought this discrepancy to our broker’s attention, and he assured me it wouldn’t be a problem, claiming he had overridden it.
However, when we closed on the house, I noticed that the deed still had the wrong zip code. Concerned, I repeatedly contacted the broker, insisting that we needed to update the policy to ensure the correct zip code was reflected. I feared that having the wrong zip code could lead to denied insurance claims. Despite my persistence, the broker procrastinated and avoided my messages for weeks. At one point, he even told me he was too busy and redirected me to another agent, who informed me that the policy needed to be redone.
After continued pressure from both myself and my realtor, the broker finally called me back with bad news: our insurance premiums would triple because the correct zip code (Cedar Hill) is more expensive than the incorrect one (Red Oak). He apologized for the situation but offered no solutions, instead directing me to check with Progressive for better rates. This abrupt dismissal left us in a bind, as we had only budgeted for $1,094 a year in insurance, not over $3,000.
This financial strain has been devastating, especially since I had flagged the issue with the broker early on. I’m wondering if there is any recourse for this negligence. I know we can file a complaint with the Texas Department of Insurance, but is there any potential legal action we can take? Was anything illegal done here? Any advice would be greatly appreciated.