Insurance Check for Roof Repair, Selling House

[yourbudweiser]

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

I filed a claim in 2005 after Hurricane Wilma damaged my roof. The claim was paid and I made the necessary repairs. I recently had a public adjuster inspect the roof and he determined that the roof should have been replaced so the claim was reopened. During the time the claim was twisting in the wind, I was forced to make additional repairs to the roof at my expense and I put the house up for sale. Now that the insurance company is cutting a check to pay the reopened claim, made payable to myself and the mortgage company, I have an offer to buy the house.

- If the roof is already repaired, how will the mortgage company disburse the funds?
- If I sell the house, how will the mortgage company apply those funds?

Any additional comments are appreciated.

[uswcdh44]

Originally Posted by yourbudweiser

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

I filed a claim in 2005 after Hurricane Wilma damaged my roof. The claim was paid and I made the necessary repairs. I recently had a public adjuster inspect the roof and he determined that the roof should have been replaced so the claim was reopened. During the time the claim was twisting in the wind, I was forced to make additional repairs to the roof at my expense and I put the house up for sale. Now that the insurance company is cutting a check to pay the reopened claim, made payable to myself and the mortgage company, I have an offer to buy the house.

- If the roof is already repaired, how will the mortgage company disburse the funds?
- If I sell the house, how will the mortgage company apply those funds?

Any additional comments are appreciated.

In my experience, every mortgage company is different in how they handle this type of thing. If you just send it to them as a mortgage payment, however, that will be less that they will get at closing, leaving more money in your pocket. Unless, of course, it's a short sale.

Call the mortgage Co, ask them what their procedure is.

[yourbudweiser]

Thanks for you response.

The mortgage company is Chase and it's not a short sale.

I am concerned that they won't release the money unless I actually replace the roof or that once I sell the house, I will have to return the money to the insurance company.

The roof has been repaired multiple times and is in good condition.