Cost of Repairs an Issue?

[bobndiller]

What is the name of your state (only U.S. law)? Texas

Hi, I recently had water damage to my hardwood floors from a broken pipe. The insurance appraised the damage and issued checks to myself and the mortage company. After some research I understand the basic process.

However, in getting estimates for replacement, the cost is going to be less than the insurance apparently thought. I can get the exact floor I want installed (even upgrading to a better wood) for less money than the insurance paid out. I guess labor is cheaper here than they estimated. I'm not trying to save money but I found exactly what I want to install and it just doesn't cost as much as they gave me.

Am I doing anything illegal if I don't spend all the money they gave me for repairs? The bank requires I submit a contractor's proposal for part of their inspection. Am I going to have problems if the proposal is for less than the total given by the insurance? Are they still going to release all the funds or send some back to the insurance or what?

Thanks for your help.

 

[ecmst12]

If you already recieved the check but found a way to get the repair done cheaper, there is no obligation to return anything to the insurance company. I'm not sure how the bank will handle it if both names are on the check; they may apply excess to your loan or they may let you keep it.