Dealing with a home insurance claim can lead to some extra stress in your life. We hope you never have to go through it, but in case you do, we want you to understand the home insurance claim payment process. Contractors, insurance companies, adjusters, estimates, receipts, never ending paperwork; it’s a lot to deal with. Hopefully, most of us will never experience a home insurance claim, but some of us will and we want you to understand how a home insurance claim payment is handled.
Claim has been filed, your working with your insurance company claims department & have found that there is coverage available, you’ve found a contractor to complete the work, and now you need to complete the repairs. But wait, you need money to begin the repairs. If you own your home outright (no mortgage), the home insurance company will mail you a home insurance claim payment check in your name to complete the repairs. But what if you have a mortgage on your home?
If, like most of us, you have a mortgage on your home, the home insurance claim payment check may be made out to both you and the mortgage company. This home insurance claim payment check won’t be usable without the cooperation of your mortgage company. But that’s okay, your mortgage company has a Loss Department to help you with this. Why is the home insurance claim payment check written in both names? Remember, the mortgage company has a financial interest in the house, they are a part owner.
If you receive a home insurance claim payment check written in your name and the mortgage companies name, you’ll need to contact them right away. Your mortgage company will have a Loss Department & a system in place to assist you with this home insurance payment check. Follow the instructions from your mortgage company to get this taken care of quickly. They may have you endorse the home insurance claim payment check & send it to them, along with the contractors estimates. Depending on your mortgage company and also on the amount of the home insurance payment check, they may endorse the full amount back to you right away. Some will open an escrow account for you & issue partial payments to you to begin the work and send additional payments as the work is completed. Some will send an inspector out to make sure the work is completed. Whatever their requirements are, you’ll need to cooperate fully.
We know home insurance claims & home insurance claim payments can be stressful to deal with. Rancho Cal Insurance Services wants you to understand the the home insurance claim payment process to make it easier for you to handle quickly and efficiently.
As an Independent Insurance Broker, we are here to help you with your home insurance, auto insurance, and business insurance. We’ve been assisting our friends and neighbors in Murrieta, Temecula, Winchester, Menifee, and throughout California find the insurance policy that they want for their home, cars, and business for many years. We’d love to help you too!