When you go through a lender to secure a home mortgage, the mortgage company has an equal interest in preserving the value of the property. So, if there is damage or loss to your property when you receive a check from the insurance company after filing a claim, you may notice that both you and your mortgage company are listed on the check. Let’s discuss why this happens, and when you should seek the guidance of a public adjuster if there is ever a problem with the reimbursement process.
The Mortgage Lender is Co-Insured on Your Property
When you sign your mortgage, a clause in the contract will detail if your lender is a shared beneficiary in the event of any insurance claim reimbursements. Since both you and the lender are at risk of a financial loss if the property is damaged and not properly repaired, it’s in the lender’s best interest to verify that you use the recovered money to restore the property.
In many cases, after receiving the insurance claim payment, you will be required to send the amount received to your lender. They will hold the money for you, and send you the necessary funds as home repairs are made. If the property loss is less than $500, or the damage was exclusively personal property like clothes or furniture, it may not be necessary to send a claim to your lender to hold. To be on the safe side, it’s always best to contact your lender directly to see if you need to take additional action following a claim payment.
Ensure That You Receive All That You Are Entitled To
Many insurance companies will send you a check that says “full and final settlement”. If you unwittingly sign this claim payment, you will no longer be able to file an appeal (a revised claim with additional supporting evidence or revised damage amounts) or request additional funds in the future. This may not be an issue if the damage is minor, but when you’re dealing with significant property loss or damage, it’s always better to tread with caution.
A Public Adjuster Protects Your Interests
The best way to protect your finances and ensure that you’ll have the funds you need to repair your property is by seeking expert guidance. When you work with our public adjusters in Bucks County, PA, we will help you analyze your insurance agreement, personally assist with the property appraisal, and organize a flawless claim that guarantees you’re getting every dollar you deserve. Just like you wouldn’t go to court without an attorney, you must seek the wise counsel of our adjusters that understand the ins and outs of the claims process.
When you work with our adjusters, you never pay for services until you have successfully won your claim. With our adjusters on your side, both you and your lender can expect the fair compensation you deserve.