What do I do with homeowners insurance claim check?

  • by lg
  • Dec 06,2017
  • 7 answers

I currently have a check that was endorsed to myself by the mortgage company after an insurance claim was processed.
Do I have to spend the entire check on the repairs?
Do I have to do all of the repairs with a professional or can I do them myself?
Insurance company is Florida Penninsula
Mortgage company is Ocwen
I have spoken to both companies and they are very technical with their answers. I guess I am looking for someone to dumb down how the process works so I can understand and not do anything I shouldnt.


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Insurance Answers (7)

mbrcatz 3 days ago

If Ocwen has signed the check over to you, you can do anything you want with it.
The smart thing to do, is to repair the house. It doesn't matter if you do it yourself (as long as you do a good job) or if you pay someone else to do it. You'll have about 4 months before the insurance company starts asking you for proof that the repairs were done - and if you can't prove it, they'll cancel your policy. And you won't find another insurance company to write the coverage, with existing damage.
Then the lender will put "forced placement" coverage on the house - at about 10X the cost of regular homeowners insurance - and if you don't pay it, they'll foreclose.

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H. Marie 6 days ago

you have been issued the check for repairs if you choose to use the money some other way that is up to you but don't complain when those needed repairs interfere with your living later on

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Casey Y 6 days ago

The check is in both names so you don't take the money, run and leave a devalued property behind for the mortgage company. So, in order to access those funds, the mortgage company needs to sign off.
Often, the mortgage company will release a certain amount to get you started and then more as the work progresses. I bet they asked for you to endorse the check and send it to them. They will then deposit it and release funds as you complete the work. This is very common and you shouldn't be concerned.

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Judy 6 days ago

deposit the check, and fo the repairs however you want to

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Mark IX 6 days ago

They've given you money to undertake repairs, how you chose to spend that money is up to you. That said, any repairs will have to meet appropriate building codes, so unless you're a professional electrician, for example, you'll need to get contractors in to complete at least some of the work.

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The Football God 6 days ago

Unless the house is paid in full, the mortgage company will have a say in how it is spent. You must maintain value.

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DR + Mrs Bears face 6 days ago

The money is yours to do with as you will. You need not do the repairs at all if you don't want to.

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