Homeowner's insurance paying too little on storm damage. What can State Insurance Commission or a lawyer even do?

[rjmacs]

Dennis S wrote:
The check expires 11/3/20. Will I be forced to accept it then or lose it? Are they required to reissue it if we haven't agreed to the settlement yet?

Their financial obligation to you does not expire with the check. They still owe you what they owe you, and they can't force you to accept payment.

[Zoidberg]

bazookaman wrote:
[quote=mattkime]
[quote=Zoidberg]The mortgage company that fucked us over so badly was Chase Mortgage.

How was the mortgage company involved?
If you HAVE a mortgage than the bank technically owns the house. SO any money you get from insurance you have to sign over to the bank and they decide how much you get and when you get it. Its VERY frustrating.

We had the same issue with the tree in our house. Even though we were eventually made whole. It took almost exactly a year and endless calls and frustrations. The insurance company turned out to be the shining light. The mortgage copamny was an absolute shitshow.
What bazookaman said.

mattkime wrote:
Is it like this everywhere? My name is on the title.

Is your house 100% paid for? If not, the mortgage company owns the house, or technically a lean against it. I forget the jargon. You don't own the house yet, even if you've paid 99.99% of the mortgage and have only a single payment left.

FWIW, my insurance check was made out to them and me. I could not deposit it or do anything with it. It gets dark after that and my blood pressure doesn't like me recounting the whole tale.

[mattkime]

Zoidberg wrote: FWIW, my insurance check was made out to them and me. I could not deposit it or do anything with it. It gets dark after that and my blood pressure doesn't like me recounting the whole tale.

So how is that supposed to work, in theory?

[Dennis S]

The house is paid for. There is an agent in town that represents Safeco.

[Zoidberg]

mattkime wrote:
[quote=Zoidberg]FWIW, my insurance check was made out to them and me. I could not deposit it or do anything with it. It gets dark after that and my blood pressure doesn't like me recounting the whole tale.

So how is that supposed to work, in theory?
Are you baiting me at this point? Let me take my pressure meds before going deeper here.

Mortgage company will not endorse it to you. You have to endorse it, they deposit it into your escrow account.

[mattkime]

Zoidberg wrote: Are you baiting me at this point?

Heh, NO! You're supposed to be doing your breathing exercises while someone else answers! :-)

[chopper]

Yeah. We went through something like this with State Farm. We switched companies after that debacle.

Agents are just there to take money and pass the buck.

[btfc]

In some circumstances it makes sense to take them to small claims court.

[numbered]

Every mortgage has a lien against the property as security, even if you only owe a dollar. This means that the bank does not literally own the property, but the lien means you cannot do anything with the title without their signature. (This is why when you pay off a mortgage they need to sign off when you change the title with your county.)

In practice, insurance proceeds attach to the property not to you personally so it gives any lien holder a kind of property right to be made whole FIRST. This is generally true for any secured loan.

A reasonable mortgage holder wants to insure that you put the money back into the property to retain value and protect their loan. However, some property owners would be happy to take the money and walk away leaving the lender holding the bag. The risk of this means that the lender's minions are terrified and want to hold the funds. In many cases they want you to fund the work, then submit receipts so they know you are rebuilding.

It sucks, but that is what the contract says in every case. And if you have a second or a HELOC others participate as well.

[mattkime]

Thanks, numbered!