Why does my insurance check include my mortgage lender, and what do I do?
Short answer. Your lender is named because the mortgage clause in your policy protects its interest in the house, so it must endorse any dwelling claim check. Call the lender's loss draft or insurance claims department and send what it asks for, usually the check, the adjuster's estimate and your signed contract, and it will either endorse the check back to you or hold the funds and release them in stages.
Step by step
- Endorse the check yourself, then call the number on your mortgage statement and ask for the loss draft or property claims department.
- Ask about its process for your claim amount. Many lenders endorse smaller checks quickly and place larger ones in a restricted escrow account.
- Send the package it requests, commonly the endorsed check, the insurer's estimate, the contractor's signed contract, a W-9 and a lien waiver form.
- Track the release. Escrowed funds are often paid out in draws, sometimes after a progress inspection or your signed statement that the work is done.
Things that speed it up
- Ask whether the lender accepts documents by email, upload or overnight mail.
- Get your roofer's paperwork in one packet up front.
- Keep the loan current; lenders often hold back more when payments are behind.
Things to avoid
Do not try to deposit a check missing an endorsement, and do not sign it over to a contractor before talking with the lender. Georgia law also makes it an unfair practice for a contractor to take an assignment of your insurance proceeds within one year of a declared natural disaster, so be wary of anyone rushing you to sign over the money.
The recoverable depreciation check will usually list the lender too. See the full guide to mortgage company insurance checks and recoverable depreciation.