Working With Your Mortgage Company After an Insurance Claim

When filing an insurance claim after a disaster, expect your mortgage company to be involved. Since they have a financial stake in the property, they want to ensure proper cleanup and repairs are completed. In some cases, you might be surprised to see your insurance claim check issued with both 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 your claim with your insurance company, and work directly with your agent or adjuster throughout the process.
• Once your claim is approved, your insurance company will send you payment to cover the cost of repairs or replacement.
• Notify your mortgage company about your insurance claim.
• You’ll receive your insurance check. 
• If your check includes your mortgage company on it,  you must process it through them.
  • For smaller claims, the mortgage company may endorse the check to you, allowing you to pay for the repairs directly.
  • For larger projects, the mortgage company may release the funds in increments, as repairs are completed. 
  • Releasing the funds in increments, as outlined in a draw schedule, ensures repairs are properly completed. This process not only safeguards the mortgage company’s investment but also protects you from 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 stage before additional funds are released. After the project is deemed complete, the final check is issued, and in some cases, you may also receive 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.