The reason why insurance companies will make the payments to both you and your mortgage company is because the financial interest in the property by that company is protected and honored through the insurance company. Because of this, getting the full amount you need to repair or replace the covered property can be difficult. This can spawn many questions; Why does the mortgage company hold some of your insurance payment? How do you get it so you can get proper repairs? How do you work with the mortgage company during this process? These are a few tips to help you work with your mortgage company when you file property claims in Orlando, FL.
These are good questions to ask and the answers to them may be more simple than you think.
When the insurance company cuts a check for damages to property, if that property is under a mortgage loan, then the financial investment amount (what is still left on the loan) may get withheld by the mortgage company. This doesn't always happen, and sometimes you will see only a small amount withheld. Most states specify that only the loan amount can be withheld by the mortgage company. Always read your policies and state specific laws involving mortgage loans and insurance claims.
Until the mortgage company releases a portion or the entire amount of funds payed out on the claim, it remains in the account of the company. That means, you got to play nice with the mortgage company to get what you need.
Simply put, when you get a mortgage loan, you agree that the company would be insured with you. This is a security policy to protect their investment. If you run off with insurance money, instead of repairing damages with it, they can take your home and keep it all to themselves.
The only way you are getting that money to repair or replace your home is to convince the mortgage company to hand it over. Honestly, it isn't a hard process. Sometimes it is time consuming, but they understand you need your home to be whole and safe.
Basically, get in touch with the company. Stay in touch. Always be firm but patient, polite, and persistent. Document all the names and numbers, as well as supervisors, of everyone you talk to. Also, just as you want to stay informed, make sure you are writing detailed letters about up to date happenings. You need to show them that their collateral cannot be rebuilt without the money.
Make sure, when you are communicating with the mortgage company, to ask them to document and keep you in touch with what is happening with the money while it is in their possession. This could ruffle feathers in a good way.
If you are looking for help with your property claims in Orlando, FL, contact our insurance adjusters for the advocacy you need today.