Who Does the Homeowners Insurance Claim Check Go To?

Who does homeowners insurance claim check be made out to? If you completely paid off your home mortgage the claim check will be in your name or in your spouse name as policyholders. On the other hand if you finance your home and still paying your mortgage you have to read the following lines to know how to easily deposit or cash your claim check and start repairs.

After you make a claim and before you receive the claim check from your homeowners insurance company you need to review your mortgage contract or call the company to find out whether the lender after endorsing the check will keep it until the contractor finishes the repairs or they will allow you to deposit the check or cash it immediately to pay the contractor.

Your mortgage lender has nothing to do with your home contents they only care about your home structure because they lend you money to buy the building not the contents. That is why the claim check requires only your name if you file a burglary claim or any other claim unlike claims concerning Structural damage to your home and in this case your mortgage firm has to endorse the claim check.

In Some incidents such as fire damage, your homeowners insurance company will reimburse you for loss of both damage to property and damage to home structure. In this case the claim check will go to you and your mortgage company before the repairs takes place.

The homeowners insurance company requires you to get the approval of your mortgage lender on the claim check before you start the repairs. And in order to insure that you will spend the money on restoring your home the mortgage company has to endorse your settlement check so you must have it signed by the lender.

After the mortgage company receive the check they should approved it within a few days vary from one state to another. In case the lender delays in the check payments you have to send a complaint to your state department of insurance.

The homeowners insurance company- as a rule- issues the claim check to you as a policyholder and to the mortgage bank to protect their investment and interest. Then the bank keeps the check and pay by installment as long as the home is undergoing repairs. In case you decide to undertake repairs yourself your lender will give you the approval if ONLY you are a professional licensed contractor.