photo credit: butler.corey
In a disaster, nothing is easy. If you have a mortgage and your home has been severely damaged or destroyed, some or all of the payment checks from your insurance company will be made payable jointly to you and your mortgage company.
But until your mortgage company releases its claim on the funds, that money will sit in your mortgage company’s account. And you need that money for your repairs! So you must understand how to negotiate your way through the claims process.
Here are a few tips from United Policyholders – a non-profit tax-exempt organization that helps to educate consumers about insurance:
- Read your documents and get in touch with your mortgage company by phone and mail.
- Be persistent and patient. Be polite but firm.
- When talking to your mortgage company, emphasize that without the money, you cannot get their collateral rebuilt.
- Ask the mortgage company to document what happens to the money while they have it (does it generate interest, and if not, is it invested?). The answer could be uncomfortable for them — and if so — that’s good for you.
To read an FAQ from United Policyholders and more details about how to get your money, CLICK HERE.
And to learn more about disaster/home insurance, check out some of my previous columns:
- Do you need disaster insurance?
- 10 things your insurance may not cover
- Is your home underinsured? 8 key points
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