Roof Repair

[Jandrews]

Just had an insurance adjuster here to evaluate damage to my roof from a series of recent hail storms. He indicated that there was minor damage across the whole roof, and that there would likely be a settlement from the insurance company for a full new roof.

He also asked for the name of my mortgage company, and indicated that they MAY have to endorse the settlement check before I get it.

My question is, since I have over 50% equity in my house, is this step necessary? I would like to receive the check directly and manage the contractor and repairs on my own.

Any gotcha's here?

Thanks,

JA

[cgarr]

Maybe its because so many people are behind on their payment now a days, otherwise never heard of such a thing. If they have to ok it then just make sure your mortgage company knows that if its not up to your standards the payments will stop! This should be between you and your insurance company.

[Jandrews]

Ok, I followed up with the insurance adjuster and he said that federal insurance regulations require that primary and secondary mortgage holders are included as co-endorsers on any insurance claim settlement greater than $10K "to protect their interest", despite my level of equity in the home.

If this is a law, then I guess it is what it is. Any other facts available on this?

Thanks,

JA

[gchappel]

Been there, done that. We had a roof damaged by hail 15+ years ago- when we had a mortgage. Same thing, the bank had to countersign the check. This was long before the housing crisis. They wanted to be sure the money was actually used to fix the house- not on hookers and blow.
Gary

[gr8fl4porsche]

My parents just received a tornado damage check also containing bank info.

Odd part is there is no mortgage holder on the property.

[Jandrews]

How does having the mortgage holder co-endorse the check prevent you from spending it on hookers and blow? The way he explained it, the insurance co. will send the check to me, with co-endorsement requirements. I will send it to the bank, they will endorse it and send it back to me, where I will sign it and deposit it (and then hire a contractor to repair my roof).

JA