The Mortgage Company and the Claim
Your lienholder or mortgage company will be listed as a name payee on the check because they have an interest on your property. You have a loan with them and they need to make sure repairs will be completed.
Each mortgage company has different guidelines for the endorsement of the insurance checks. Most of them will endorse checks if the amount is less than $40,000. It also depends on the type of loss (water wind fire) and if you are current with your mortgage payments.
If you are not current, the mortgage will want to make sure you are using the money to repair the property, therefore they will force you to hire a contractor regardless of the amount, and they will issue the funds in parts with the contractor's name on the check.
In addition, if you refinance, make sure to let your insurance agent know so they can make the necessary changes in your policy. Many times, we get the insurance claim payment with the wrong mortgage company, which delays the process even more
If you are having a hard time getting the money released by your mortgage company, feel free to contact us for more info.
Maria E. Shalack - Senior Professional Public Adjuster
Call me for a Free Inspection.
(305) 343 1963