Let’s clarify everything about insurance claim, where you will learn:
- How do you pay?
- Which person will receive the check?
- Will it be necessary to replace the items?
We know that as soon as disaster strikes, people generally want the routine to resume as soon as possible.
We understand that the same is true for insurance companies, which want everything to be normalized.
During this process you will certainly be able to receive several many checks, which is a normal task for insurers, this includes minor jobs like temporary repairs, even those that are permanent repairs, including obviously replacing damaged belongings.
Be aware that when you receive your initial payment there will be more
We can not generalize, but in most cases, the person of the appraiser will be in charge of doing all the inspection.
It will raise what the damage to your home is, then it will surely offer you some kind of cash value.
The appraiser will have as its initial basis the terms and limits of the policy of their owners.
The insurance company will initially give you a check, being a type of advance, based on the total amount of the insurance claim.
Please be aware at this time that a kind of agreement may be made on the spot, although this does not prevent you from accepting the check on time.
But pay attention to this detail, because you can certainly find another damage, there always will be.
In this case you can reopen the insurance claim and file for an additional amount.
Within insurer standards, there are policies that basically require insurance claims to be filed for a period of one year. This period starts from the date of the disaster.
Insurance Claim May Offer Multiple Checks
By damaging both the structure of your home as well as your personal belongings, insurance companies offer you at least two separate checks.
Payment for these checks is for the additional living expenses incurred. To better understand, let’s explain, this would be if you can’t live in your house while it is being repaired.
An important detail would be that you have a type of flood insurance, in this situation you understand that you have suffered flood damage, it also means a separate check.
An important detail in insurance claims are lenders
That’s right, something that goes unnoticed for many people, but one that should be aware of is that your lender or management company in this situation may have some control over your payment.
To better explain this part, imagine you have a mortgage on your home, all documentation of this insurance claim check that will pay for repairs will be done for you and the mortgage lender.
Remember that lenders generally require a certain condition to grant a mortgage, this includes having them mentioned in the homeowners policy.
Not only that, lenders always ask them to be part of any structure-related insurance payments.
This does not depend on the type of housing you live in, whether simple or condominium living, however your management company may have required the building’s financial entity to be named co-insured.
There is this kind of mention in the documents to ensure that the lender, in this simulation we would say that can be a cooperative or condominium, the building in general, are entities that certainly have a financial interest in your property, have some kind of guarantee for the necessary repairs are made.
Now if there is a kind of financier, in which case it would be a co-insured, that person or entity has an obligation to endorse the claims paycheck before you can make the exchange.
There is a very common practice where lenders can also put money into an account with the intention of having a guarantee and paying for repairs as the work is completed.
For these reasons it is always important to indicate to the mortgage lender the offer that was made by the contractor.
Also show the lender how much the contractor wants to start work in advance.
This is because in general the mortgage company may want to inspect the work completed before releasing funds for payment to the contractor.
In case of destruction as is the payment of insurance claims
In such a scenario if your home has been destroyed the final sum of this settlement value, you must obey the following bylaws. Where the recipient will be informed by their type of policy.
That is, all the specific limits and terms of your mortgage will answer these questions.
Just to give you a pretty basic example, where part of the insurance proceeds can be used to pay off the mortgage balance.
In this situation where all other recipes are used for this repair purpose, it depends on your own decisions, as to whether you want to rebuild in the same batch, in a different location, or not rebuild. These decisions are also driven by state laws.