Hurricane Irma insurance claim

[runt4561]

I wanted to share my experience with you guys and see if it is as abnormal as I think it is. I have never had an insurance claim so I am kind of lost.

My house was damaged during Irma. No extreme damage but enough to justify a claim. Nationwide Insurance was great to deal with. They cut me a check to make several repairs and I feel it was fair.They made the check out to me and my mortgage company. I called the mortgager to find out what to do. They said I have to sign the check over to them and then submit estimates from licensed contractors.They will disburse money for a deposit on the work and then 50% of the cost halfway and the remainder when complete. All of the work will be inspected by their own inspector while the work is going on ad upon completion.

My fear is that my insurance company has set aside $3K as "depreciation value".After the work is complete, I submit invoices for the work that I done and then they release those funds to me. I am worried that I will have to sign that over to the motgager and they will keep it or if I can get everything fixed for less than the insurance claim, they will keep that too.

everyone I have talked to has never heard of this. Any thoughts or advice?

[Hez]

[z7extreme]

I wanted to share my experience with you guys and see if it is as abnormal as I think it is. I have never had an insurance claim so I am kind of lost.

My house was damaged during Irma. No extreme damage but enough to justify a claim. Nationwide Insurance was great to deal with. They cut me a check to make several repairs and I feel it was fair.They made the check out to me and my mortgage company. I called the mortgager to find out what to do. They said I have to sign the check over to them and then submit estimates from licensed contractors.They will disburse money for a deposit on the work and then 50% of the cost halfway and the remainder when complete. All of the work will be inspected by their own inspector while the work is going on ad upon completion.

My fear is that my insurance company has set aside $3K as "depreciation value".After the work is complete, I submit invoices for the work that I done and then they release those funds to me. I am worried that I will have to sign that over to the motgager and they will keep it or if I can get everything fixed for less than the insurance claim, they will keep that too.

everyone I have talked to has never heard of this. Any thoughts or advice?

pay yourself 100$ per hour labor and double the price on all materials used you should recoup a nice check back....

[Spinningrod]

I had a claim in 2003 due to hurricane damage. I have State Farm insurance and the adjuster came out inspected the damage and wrote me a check on the spot. Still had a mortgage but was very little only like 15000.00

[Bub]

I had a roof claim last year due to hail damage. The insurance adjuster sent me the check payable to both me and the mortgage company, he said that was normal. I also had a separate check payable to only me for some other repairs such as drywall, insulation, and some light fixtures due to the ceiling falling in from the water damage. I called the mortgage company to find out what my options were and they said the same as what you were told... sign the check and send to them, they will pay the roofing company. I explained that I would prefer to have the check signed by them and sent to me for endorsement, then "I" will pay the roofing company. They sent me to a manager, then to another supervisor who finally pulled up my account and said they would process the check as I wished since my account was in good standing, etc. but that they will need to send an inspector out after the repair was completed to verify it was finished. I sent them the check, they endorsed it and mailed it back to me, I deposited it and called the roofing company I planned to use and told them to begin working. I gave them a $5k deposit and paid the rest upon completion, then called the mortgage company to let them know they could send out their inspector whenever they like. Although my deductible is $5,000, the amount of my check was actually a lot more than the cost of the roof so I never paid a dime out of pocket. I used the difference for some other upgrades and new gutters, etc.

[drake322]

Dealing with this BS right now! Same scenario. The insurance co did not pay me enough to cover whole roof, and being out of work for 6 months I did not have the $5k extra sitting around. Also, all of my roof was not bad, just a few spots. Been round and round with them and finally told them "here is my estimate, here is all paperwork, you have the check endorsed, send me the 50% ASAP so I can get repairs done". Well I got t call yesterday that said all of the paperwork was approved and check is going to the department for endorsing and from there I will get a check to me and contractor for 50%. The remaining balance will be issued to me once inspection is done according to them. The cannot keep it because it was part of my insurance premium I pay.

z7extreme, I would like to hear how this turns out for you.

[edw]

I own a State Licensed remodeling firm in N.E.Georgia...I run into this frequently...and make a practice of not dealing with insurance claims in general as my quality work is in very high demand and I usually on average am about 8 to 10 weeks out for start dates. Insurance companies in general are no longer considered you friends...nor is your banker...In general you should not have to worry about the recoverable depreciation however. Your policy more than likely states replacement value covered...all they want to see is that you have proof of the fact that you used the money as it was intended and they will pay you the recoverable depreciation. This stipulation is also due to consumers trying to take advantage of funding from their insurance carrier by getting expensive quotes from high end companies such as mine and then hiring the cheapest after the settlement is reached in attempt to cover the deductible or actually profit from the claim...I choose in most cases just not to get involved as most insurance companies also try to low ball the settlement as well. Its sad as to where the world is heading...the best of luck to you! Respectfully, Ed

[JohnnyO]

You have a house that is worth $200K and the mortgage is $150K, who owns more of the house. You or the bank. If you have damage to there home they want to know about it. Thus the requirement for the two party check. Up until the crash of 2008, not many mortgage companies cared, now they do.

[edw]

agreed JohnnyO! very interesting point sir!