Why is my insurance check made out to me and my bank?
Why is my insurance check made out to me and my bank?
Insurance companies issue claim checks in both your name and in the mortgage company’s name. This feature enables your lender to ensure that these funds are used to make necessary repairs.
Can you use homeowners insurance for something else?
You also risk not having future damage covered. If the unfixed damage causes more damage, your insurance company will deny future claims. However, any leftover money after the repair bills are paid can be used at your discretion unless specifically stated in your contract. Sep 9, 2021
Why does my mortgage company have to endorse my insurance check?
The reason that this happens is because the mortgage company is part-owner in the house, and they have an interest in making sure you take care of it. If you’re married and both on the homeowner’s insurance policy, the check would include both your name and the name of your spouse. May 3, 2017
Can you use insurance money to pay off mortgage?
Can I use the insurance funds from a property damage claim to pay off my mortgage? Yes, if the claim amount exceeds the amount required to pay the mortgage in full.
Which area is not protected by most homeowners insurance?
2. What’s NOT Covered On a Standard Homeowners Insurance … Earthquake and water damage. In most states, earthquakes, sinkholes, and other earth movements are not covered by your standard policy.
