We have water damge in our bathroom. We were not ask to get

Posted: Wed Aug 25, 2010 03:13 am Post Subject:

You need to contact your mortgage company and inquire how to handle the check. They have been through this a thousand times and should have a system set up.

If you did not obtain an estimate then your insurance company wrote one. They should provide this with the payment. You need to give their estimate to the repair company of your choice and have them contact the insurance company if any differences.

Posted: Wed Aug 25, 2010 07:56 am Post Subject:

Yes, your insurer should provide you with an estimate. If you don't get one, you may probably ask for one. Even if the mortgage co. isn't local, it shouldn't lead you through hassles.

Posted: Wed Aug 25, 2010 10:52 am Post Subject:

If, after receiving the proceeds, you have the work performed and additional damages are discovered that require repairs, the insurance company will provide an additional payment for that.

The only challenge facing you is having the damage the insurance company identified repaired for the amount of money they are providing. Your deductible is not part of that payment, and is an out of pocket expense. So if the damage estimate is $1000, and you have a $500 deductible, then your check will be written for $500. If the repairs cost $1000, the insurance company's money plus your $500 will cover the repair.

Although they probably won't, your mortgage lender could withhold sending the money to you until after it receives evidence that the repair has been completed, in order to prevent you from receiving the money and not making the repairs, diminishing the value of the property in which the lender has a security interest.