It is estimated that thousands of homeowners and car owners damaged by the recent floods have filed claims with their insurers. The process isn’t quick, but when the money to cover the repairs is finally sent to you, your name might not be the only one on the check.
If you have a loan or mortgage, your insurer will likely send the check to you and the lender or bank. Many homeowners who want to cash those checks for repairs wonder why put the name of the bank on the check the insurance sends me?
Cinthya Lavin, vice president of communications for BBB.org, says, “The check will be issued in the name of the bank you have the mortgage with, because the insurance companies want to make sure you’re using that money, because for your home catering use and not for anything else”.
You must work with the bank to release these funds. Sometimes if it’s a small claim they give you all the money at once but when it’s a major claim or a total loss claim they may issue a one-third funds up front to start repairs, another one-third when you’re halfway there. and the last when the arrangements are complete.