Dynamic Accident Lawyers: Tips For Getting Your Mortgage Lender to Release Insurance Claim Funds

Homeowners insurance protects the homeowner against a variety of risks that come with home ownership.

The benefits are designed to cover the home’s structure, personal property, cost of living arrangements in case of home damage, and certain other liabilities that may occur in the wake of damage or total destruction.

However, in the event of serious damage or destruction, homeowners might be surprised to find they don’t have total control of their insurance claim checks.

Because mortgage holders have a financial interest in a home and are named on the insurance policy, the companies take steps to protect that interest. That includes holding onto a chunk of repair money until homeowners provide proof that the damage is fixed.

If you have a mortgage, and your home has suffered severe damage or been destroyed, some or all of the payment checks from your insurance company will be made payable jointly to BOTH you and your mortgage company.

This happens because your lender has a financial interest in the property that your insurer will honor and protect.

Until your mortgage company releases its claim on some or all of the settlement funds, they will sit in your mortgage company’s account. This means that before you can begin to rebuild, you must first understand the process of how to get your mortgage lender to let go of your insurance settlement proceeds.

Homeowners who are having difficulty gaining access to insurance claim funds may want to follow these tips in order to get control of the insurance funds.

Get in touch with your mortgage lender or escrow department rather than dealing with the insurance company, and stay in touch. Be persistent and patient, polite but firm.
Document everything. Keep a log or diary of the name and contact information of every person you talk to, the time and date, and what was discussed during the communication. Write detailed notes that review what’s happened to date.
Hold off mailing the check. Instead, it is recommended to hand deliver the insurance claim check to a company officer to be endorsed or processed.

What if the Lender Holds the Insurance Claim Funds?

While most lenders have the right to hold on to insurance claim checks during the repairs or restoration process, some lenders may opt to release funds in a series of payments or all at once. Even if a lender holds the insurance claim funds or releases them intermittently, this can cause hardship to the homeowner.

Until the mortgage lenders endorse the settlement check and release the money, homeowners cannot use the settlement money to pay repair bills. Many contractors will not begin repairs without receiving some sort of deposit or payment, leaving the homeowner to pay for repairs out of pocket.

A homeowners insurance claim class action lawsuit investigation is underway, targeting many major mortgage holders and financial instructions that may be holding up the property damage claim settlement process and in turn causing undue stress and hardships for their customers.

Join a Free Insurance Property Claim Class Action Lawsuit Investigation

If you have experienced difficulty recovering insurance property claim money from your mortgage company, you may have a legal claim. Submit your information now for a free case evaluation. If you qualify, a lawyer will contact you to discuss the details of your case.

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