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Ex Wife Submitted Homeowner Claim

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Ex Wife was awarded the marital home as a part of the divorce in Feb 2018 - she was not on the title or deed of the house, but was on the homeowner's policy. Mortgage remained with the husband until July 2018 when ex wife refinanced. In March 2018, ex wife filed a homeowner's claim for roof damage and received a check with an "AND" - meaning, both should have been required to sign. She signed alone and cashed. Now ex husband's current homeowners policy is being impacted due to a prior claim that he just found out about. Is there anything illegal about what she did? The house was in his name and she was paying rent - how was she able to cash a $5K claim check on her own?
 

Ohiogal

Queen Bee
Ex Wife was awarded the marital home as a part of the divorce in Feb 2018 - she was not on the title or deed of the house, but was on the homeowner's policy. Mortgage remained with the husband until July 2018 when ex wife refinanced. In March 2018, ex wife filed a homeowner's claim for roof damage and received a check with an "AND" - meaning, both should have been required to sign. She signed alone and cashed. Now ex husband's current homeowners policy is being impacted due to a prior claim that he just found out about. Is there anything illegal about what she did? The house was in his name and she was paying rent - how was she able to cash a $5K claim check on her own?
Who are you in this situation? She was awarded it per divorce documents. That should have been enough.
 
His sister. She was awarded the right to refinance the home in her name, however she didn't do so for months after the claim was made. The HO policy was in their name, so her claim (that she failed to tell him about) impacts his new homeowner's insurance cost. He was still paying the mortgage until she refinanced - perhaps it's just a shady move and not illegal, but the fact that it impacts his insurance is unfortunate.
 

Just Blue

Senior Member
His sister. She was awarded the right to refinance the home in her name, however she didn't do so for months after the claim was made. The HO policy was in their name, so her claim (that she failed to tell him about) impacts his new homeowner's insurance cost. He was still paying the mortgage until she refinanced - perhaps it's just a shady move and not illegal, but the fact that it impacts his insurance is unfortunate.
Please have your brother join and post for himself. It is much more effective to have the actual legal party post because they have 1st hand information. Thank You.
 

FlyingRon

Senior Member
Her signing the check was immaterial to the fact that he has a claim history.
The policy still in his name and a claim was made. You can't change that history no matter what she did with the claim money.
 

adjusterjack

Senior Member
Her signing the check was immaterial to the fact that he has a claim history.
The policy still in his name and a claim was made. You can't change that history no matter what she did with the claim money.
Ron beat me to it. That's how it is.

When the house was awarded to her, he should have quitclaimed it to her and made sure the policy was re-written in just her name, or at least done that when she refinanced.

I preach (ad nauseum) that people should pay attention to their insurance. This is one of the consequences for not paying attention.

He's going to have to live with the rates for the 3 year experience period. He can at least shop annually to see if he can get better rates as the claim gets older.
 

not2cleverRed

Obvious Observer
Ex Wife was awarded the marital home as a part of the divorce in Feb 2018 - she was not on the title or deed of the house, but was on the homeowner's policy. Mortgage remained with the husband until July 2018 when ex wife refinanced. In March 2018, ex wife filed a homeowner's claim for roof damage and received a check with an "AND" - meaning, both should have been required to sign. She signed alone and cashed. Now ex husband's current homeowners policy is being impacted due to a prior claim that he just found out about. Is there anything illegal about what she did? The house was in his name and she was paying rent - how was she able to cash a $5K claim check on her own?
I am going to focus on this: roof damage?

Was the roof damaged? I would assume that yes, and an insurance adjuster determined that there was roof damage, because the insurance company cut the check.

Now, you are concerned that he did not sign the check.

You don't seem to be concerned about the actual money; you did not state that he paid to repair the roof, or repaired the roof himself, and should have been reimbursed.

What do you think should have happened? Do you think your brother should have gotten a cut of the money? Or do you think that your brother not agreeing to cash the check would erase the claim from the insurance records?
 
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LdiJ

Senior Member
Ex Wife was awarded the marital home as a part of the divorce in Feb 2018 - she was not on the title or deed of the house, but was on the homeowner's policy. Mortgage remained with the husband until July 2018 when ex wife refinanced. In March 2018, ex wife filed a homeowner's claim for roof damage and received a check with an "AND" - meaning, both should have been required to sign. She signed alone and cashed. Now ex husband's current homeowners policy is being impacted due to a prior claim that he just found out about. Is there anything illegal about what she did? The house was in his name and she was paying rent - how was she able to cash a $5K claim check on her own?
She was awarded the house in February 2018. That made it her property even though she had not yet refinanced. She made the claim in March for the roof damage to her house. I don't know how she was able to cash the check on her own, however the ex husband would have been required to assist with the cashing of the check to repair the damage to her house. The ex husband would not have had any right to any of the money.

She also was not paying rent, she was paying the mortgage payment. Trying to characterize it as rent is inappropriate.
 

PayrollHRGuy

Senior Member
I don't think it has been mentioned or asked. Did the Ex-Wife actually have the damage the insurance paid for fixed?
 

adjusterjack

Senior Member
Did the Ex-Wife actually have the damage the insurance paid for fixed?
It would be irrelevant. Homeowners insurance doesn't mandate that you repair the damage. She could have kept the money and not made the repairs.

do you think that your brother not agreeing to cash the check would erase the claim from the insurance records?
It wouldn't. Once the claim is paid the claim is on record and can be seen by other insurance companies through CLUE (Comprehensive Loss Underwriting Exchange).

I don't know how she was able to cash the check on her own
Probably because millions of checks per day are deposited through ATMs and are processed by machine. A check that is improperly endorsed could easily slip through.
 

FlyingRon

Senior Member
Well, often the check is cut to the owners as well as the lien holder on the property. The idea is to make sure the property indeed gets repaired.
Still, it's rather immaterial to the whole subject.
 
Thank you - I say “rent” because she wasn’t able to write off / deduct anything related to the house on taxes until she refinanced it. And he wasn’t able to to get a new primary mortgage in his name until the same. So yes, legally it was hers to refi, but she was making payments against a loan in his name until she did so.

It‘s surprising that a claim she made on her property would affect his future cost; the insurance history should follow her, not him.

She was awarded the house in February 2018. That made it her property even though she had not yet refinanced. She made the claim in March for the roof damage to her house. I don't know how she was able to cash the check on her own, however the ex husband would have been required to assist with the cashing of the check to repair the damage to her house. The ex husband would not have had any right to any of the money.

She also was not paying rent, she was paying the mortgage payment. Trying to characterize it as rent is inappropriate.
 
I didn’t realize that homeowners aren’t required to make the repairs when a claim check is cut. Of course, it could vary by policy, but very few people own their homes outright. I’d assume that if a bank owns any part of your house, a part of the mortgage and homeowner’s insurance requirement would be that paid claims are fixed with the funds.

It would be irrelevant. Homeowners insurance doesn't mandate that you repair the damage. She could have kept the money and not made the repairs.



It wouldn't. Once the claim is paid the claim is on record and can be seen by other insurance companies through CLUE (Comprehensive Loss Underwriting Exchange).



Probably because millions of checks per day are deposited through ATMs and are processed by machine. A check that is improperly endorsed could easily slip through.

Ron beat me to it. That's how it is.

When the house was awarded to her, he should have quitclaimed it to her and made sure the policy was re-written in just her name, or at least done that when she refinanced.

I preach (ad nauseum) that people should pay attention to their insurance. This is one of the consequences for not paying attention.

He's going to have to live with the rates for the 3 year experience period. He can at least shop annually to see if he can get better rates as the claim gets older.
 

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