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Why Does My Insurance Check Have the Mortgage Company Name on It?

After going through the entire process of filing a homeowner’s insurance claim with your South Florida public adjuster, you may notice that your insurance check has your mortgage company’s name on it, and be curious why.  Although you may think you own your home, in reality, if you have a mortgage, the mortgage company has a substantial amount of interest in your property, therefore requiring you to carry insurance on the property. If you pay close attention to your homeowner’s insurance policy, you will notice that your mortgage company is listed as the lien holder.

Knowing all of the aforementioned information, if your home is damaged, your insurance company may issue a check for the repairs, but the check will be made to both you and your mortgage company. In fact, the insurance company issues payment to everyone who has a financial interest in the property, so it may be addressed to your mortgage company, you, and your spouse if you are married. So, what does this mean? When it comes time for repairs, you will have to work in communication and cooperation with your mortgage company in order to cash the check and get money to pay for repairs. Most banks will not cash the check without the signatures of all parties involved, so you will need to endorse the check and then send it to your mortgage company for them to endorse as well.

The professional public adjusters at Advocate Claims recommend that in order to receive the proper amount of money necessary to make repairs on your home, that you submit a request to your mortgage company for money to give deposits to contractors, as well as discuss the increments in which you will receive funds from your escrow account.