Filing an insurance claim after a disaster often involves your mortgage company since they have a financial interest in ensuring the repairs are completed properly. Here’s how to manage this part of the claims process:
- File Your Claim: Submit your claim to your insurance company and work through the process with your agent or adjuster.
- Claim Approval and Payment: Once your claim is approved, the insurance company will issue a payment to cover the repair or replacement costs.
- Notify Your Mortgage Company: Inform your mortgage company about the insurance claim.
- Receiving Your Check: Your insurance check may be made out to both you and your mortgage company.
- Processing the Check:
- Smaller Claims: For smaller claims, your mortgage company might endorse the check so you can directly pay for repairs.
- Larger Claims: For larger projects, funds might be released in stages as repairs progress. This method, known as a draw schedule, ensures repairs are completed correctly. Typically, the first payment is issued when a general contractor is selected and work begins. Additional funds are released after inspections at various stages, with the final payment issued upon project completion. This might also include a check for depreciation.
Every Scenario Is Different
This process can vary based on your insurance policy and mortgage lender. This overview provides a general idea of what to expect. Our team is here to guide you through the entire claims process, using our expertise to help you every step of the way.