Question
I recently received a settlement for storm damage to my home, the
Insurance company sent the check to me in my name and the mortgage
company's name. Is there any way to eliminate the mortgage company from
my repair decisions?
The check was for more then $10,000 so the insurance company (State
Farm) Said that they have to put the mortgage company on the check.
Answer
My response:
No.
The bank owns your home until paid in full. Therefore, they too are a "loss payee"; i.e., the bank has a right to have "their" home repaired.
IAAL
Answer
OK, then if I find another contractor that can do the repair cheaper then what the Insurance company allowed, who gets the excess funds?
Answer
My response:
You do, because you're the one paying for the insurance. However, let me warn you: If the repairs are not done to "spec", i.e., if the repairs are just "slapped" together, you could be in big trouble with the bank. The bank may require an inspection of the work, and depending upon the type of repairs, your town may also require an inspection of the completed work to make sure it is done "to code".
Good luck.
IAAL
Answer
Thank you for the help.
My example was that my roof needs completly replaced and the Insurance company is paying off the only estamate that I received. I have since found another roofing company that is NOT taking advantage of an insurance company's open wallet, if you know what I mean. In other words, the second estamate is a full $3,000 under what the first estamate was.
Do I just ask the Mortgage company for the full amount of the first estamate?
And do they mail me a check for the full amount in my name and the first roofing companys name?