Complaint Review: Sun Trust Mortgage

Due to the Naples, Florida postal service not forwarding our mail, we did not get our premium bill for our homeowners insurance until 2 weeks after it was due.  As a result the insurance was cancelled.  We immediately re-insured the property with the same company.  However, there was a 17 day lapse in coverage.  Sun Trust, would holds the mortgage on the property, forced purchased insurance from a company named QBE.  The premium for our homeowners policy was $2,800 which included liability, other structures, medical, and contents.  Sun Trust purchased insurance in an amount that was greater the $200,000 the remaining mortgage amount, to include the home only for an annual premium of greater than $14,000.  Our pro-rated amount for the 17 days was $671.  I had no objection to the bank protecting their investment.  What irked me was the premium rip off.  Since I have been looking into this "forced insurance" that banks purchase, I discovered that the actual risk to QBE is 2 to 5% greater than normal.  This would create a premium of approximately $3,000 max.  How does the bank and QBE justify a $14,000 premium.  In attempting to complain, I discovered that there are virtually no consumer protections for this kind of activity--either through banking regulations or insurance regulations--although both agencies were sympathetic and told me that this happens a lot.  My recourse, which I am taking, is to vote with my feet and finance with another bank, a local bank in Pennsylvania where relationship banking is the rule.