When filing an insurance claim after a disaster, your mortgage company will likely be involved due to their financial interest in ensuring proper cleanup and repairs. Here’s what to expect and how to navigate the process:
- File the Claim: Start by filing your claim with your insurance company and working 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 cost of repairs or replacement.
- Notify Your Mortgage Company: Inform your mortgage company about the insurance claim.
- Receiving Your Check: Your insurance check may include both your name and your mortgage company’s name.
- Processing the Check:
- Smaller Claims: For smaller claims, the mortgage company may endorse the check to you, allowing you to pay for repairs directly.
- Larger Claims: For larger projects, funds may be released in increments as repairs progress. This draw schedule ensures repairs are completed properly, protecting both your property and the mortgage company’s investment. Typically, the first check is issues when the general contractor is chosen and work begins. Subsequent payments follow inspections at various stages of the project, with the final check issued upon project completion, potentially including a check for depreciation.
Individual Scenarios Vary
Keep in mind, the specific process can vary depending on your insurance policy and mortgage lender. This overview is a general guide. Our team is here to help you navigate the entire claims process, leveraging our daily experience with insurance and claims to assist you every step of the way.
