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Working With Your Mortgage Company After an Insurance Claim

When filing an insurance claim after a disaster, your mortgage company will likely be involved. They have a financial interest in ensuring proper cleanup and repairs are completed. You might be surprised to find that your insurance claim check may show up with your name AND your mortgage company’s name on it. 

What now? How do you get the funds for your insurance claim? 

Here’s an overview of how this piece of the claims process puzzle may work: 

  • File the claim with your insurance company and go through the process with your agent and/or adjuster. 
  • When your claim is approved, the insurance company will submit payment to you to cover the cost of repairs or replacement. 
  • Notify your mortgage company of your insurance claim. 
  • You’ll receive your insurance check. 
  • If your check includes your mortgage company on it, you’ll need to process the check with your mortgage company.
    • If it’s a smaller claim, the mortgage company may endorse the check to you so you can pay for repairs. 
    • For larger projects, the mortgage company may release the funds in increments, as repairs are completed. 
    • Releasing the funds in increments (a draw schedule) will ensure that repairs are completed to protect the mortgage company’s investment in your property, and protect you against fraudulent contractors.
    • For larger claims the first check will be issued once the general contractor is chosen and work will begin.
  • There may be inspections at each point when more funds will be paid out. Once the project is deemed complete, the final check is issued and there may be a check for depreciation.

Not Every Scenario is the Same

This process can vary between your insurance policy and your mortgage lender. This is a generalized overview. 

Our team is here to guide you through the entire claim’s process as best we can. We deal with insurance and the claims process every day.