Can You Cash an Insurance Claim Check?

picture of person writing a check for recoverable depreciation

Can You Cash an Insurance Claim Check?

Many of my clients ask me, can you cash an insurance claim check?  My answer that is, “it depends.” There are a few factors which you have to look at before that question can be answered.  Does the home have a mortgage? Who is the check made out to? Who will be doing the repairs?

Whether you can cash an insurance claim check may depend on your lender.

In most cases, you are going to be required to use the money for repairing the property.  After all, that was the point of the claim in the first place. If there is a mortgage on the property, you can expect the mortgage company to come and do an inspection to see if the repairs were done.  Remember, since the mortgage company is technically an owner of your property until you make your last payment, they want to make sure that you actually do the repair, because in case you decide to walk away from your mortgage and abandon the house, the bank does not end up with a property that they have to rehab in order to sell.  

Public Adjuster Secret Strategy for Cashing an Insurance Claim Check

This is my advice:  Since the biggest pain is dealing with a lender who wants to give you your money in small increments, what you need to do is get 100% of the work done and THEN call the lender and tell them its finished.  Now, I get it, in certain cases you just don’t have the money or the job is way too big.  However, a good way to get the lender to sign the check over to you is to show them the work is all done.  Don’t have them come to your house to inspect the job to see that you are partially done.  When you have them come and inspect, you should be able to show them it’s COMPLETELY done.  You can do this by getting a line of credit from the bank, getting a personal loan, or even a disaster assistance SBA loan.  The SBA usually has a fantastic payback deferment of several months without interest, which is enough time for you to get the work done completely.

You can call us direct: 954.659.8333 Alan Himmel, Public Adjuster.  I will do my best to Help you.