homeowners insurance

[Debbie Taylor]

In Michigan. I have a situation where I had some damage on my house, my outside awning due to the snow and ice. My house insurance came out and gave me a check for the repairs to be done. My check is written out to COMERICA BANK, (because Comerica is my lienholder) my husband and myself. Comerica refuses to sign off on the check insisting for me to send them the whole check. My house insurance is included in my mobile home payment through Comerica. I refuse to send them the check and they will not sign off on it stating they are entitled to all the monies.

Is this the truth. I can not get the work started because they (meaning Comerica) wants me to send them the check and said they will reissue a check and keep the balance of the money if the work is not for the entire amount of the check from the house insurance. What are my options and how can I get a signoff from Comerica) I would just like to know my legal rights please and what I can do.

Thank You
In dire need of help

P.S. Quite some months ago we once again needed some work done and the house insurance once again issued us a check. At that time the bank (Comerica) gave a signoff over the phone and the check was cashed and the work done and now they are saying it can not be done that way.

I told Comerica that if the awning falls and hurts someone I will hold them responsible because the work needs to be done and they will not sign off on the check I have.

[Edited by Debbie Taylor on 02-15-2001 at 02:59 PM]

 

[ALawyer]

The damage to the home lessened its value, and thus reduced the value of the lien that Comerica is holding. If they gave you the money and you failed to have the repair done you'd be ahead the cash and they'd be behind on the security for their loan. That's why the insurance company paid the damage in a joint check

Now what do you do? You can continue the Mexican standoff, or arrive at an understanding with the bank as to what's involved, and how it will work out payment to the contractor to bring the house up to the same condition it was in. Most banks are pretty reasonable and Comerica has a rather decent reputation, so I don't see where all the distrust on your part is coming from.

I also guess that their experience is that insurance companies are not known for being generous on paying claims, and if the insurer concluded $1000 was needed for repairs, that's what it will take to get it back to par. So if you spent only $500 that would be a subpar job. If the insurance company was overly generous in your case -- and they do make mistakes -- some people would get the repair done for $750 and have the contractor do something extra for the balance of $250.

 

[Debbie Taylor]

I do understand what you are saying what I should do, but I think we have a misunderstanding. The insurance co. gave us $2044.00 to have the job done, so far all the quotes we have received are up and above their amount. For instance one was $3600.00. I am not continuing a Mexican standoff as you said. I do not know what makes you to believe that the insurance company has not been overly generous because they have not it seems to have given us enough compare to the estimates we have received so far. We also received a letter from the insurance stating that we can now claim the "depreciation amount" and that I must let them know by 2/23 which is fine but in order to claim it I need receipts or invoices for the repaired or replaces which is fine, but I do not have the money to put forward for the costs. The insurance company is not always correct either.

Does it really matter who does the job as long as it is done right and correct the way it was done on the house when we bought it. So once again my question is if the job was done for less than $2044.00 who is entitled to lets say a $100.00 is left, who is entitled to the money?

The awning is very dangerous now so it looks as if I will be getting another attorney for someone getting seriously injured. As I said does it matter who does the job as long as it is done right?

P.S. Quite a few companies we called to do the work told us they do not do insurance work because they have to wait for the banks too long to pay.


[Edited by Debbie Taylor on 02-16-2001 at 10:41 AM]