Using Home Insurance Claim Money

Using Home Insurance Claim Money

Do you need to know the rules when it comes to using home insurance claim money?  I see many people get in trouble after they receive their insurance settlement. What they do is they take their check and deposit it.  Once they do this, they use the money to pay off their car, some credit cards, buy a boat, or even take a cruise!

Well, I am sure you can see the problem with this.  First of all, the claim settlement money was not intended for this.  Its purpose is to do the necessary repairs to your property in order to bring it back to pre-loss condition.

It is highly recommended that you don’t do this with the money for a few reasons:  You need to know that if you have a mortgage on your property, the lender will probably not release the money to you until you either start the work on your house or have a signed contract for repairs on your house.  Here is a directory of mortgage loss draft departments. If your claim check has your mortgage company name on the pay to line, then you need to call your mortgage company loss draft department. If you call the loss draft department of your mortgage company, they will tell you if they will need to monitor your claim with inspections. And even when they do see you are actually doing the work, they are likely to only release a small part of the settlement as the project moves along.

How Are You Using Home Insurance Claim Money?

Assuming you don’t have a mortgage on the property, you are still obligated to do the repairs.  If you don’t, then all those areas of your property that you didn’t repair would be denied on any future claim that would arise.  The insurance company does this because they won’t agree to pay for the replacement of something a second time when the damage was not fixed from the first time.

Florida Allstar Public Adjusting is a public adjusting firm handling claims throughout the state of Florida. The firm was founded in 2007 and maintains an excellent record with its clients. The company’s job is to help people with their insurance claims and to get them the best settlement possible.  You can reach FAPA at 954.659.8333.