A federal appeals court has upheld a requirement that homeowners insure their properties against floods in excess of the value of their mortgage balance, but critics drew comfort from the closeness of the outcome.
By a vote of 3-3 on Friday, an en banc panel of the U.S. Court of Appeals for the First Circuit let stand the so-called “forced placement” requirement. The ruling had the effect of affirming District of Massachusetts Judge Nathaniel Gorton’s August 2011 dismissal of homeowner Stanley Kolbe’s purported class action.
