Why Is My Mortgage Company on My Roof Insurance Check in Fargo?
Your mortgage company is listed on your roof insurance check because your lender has a financial interest in the house, and nearly every mortgage requires that insurance payments for structural damage be endorsed by the lender before the money is released. This is normal on hail claims across Fargo, West Fargo, Moorhead and Horace, and Dodd Roofing and Exteriors helps homeowners through the lender paperwork on most of the storm claims we handle.
Why does the lender have to sign the check?
Your homeowners policy includes a mortgagee clause that names the lender as a loss payee. The lender wants to be sure the money actually repairs the collateral, which is your home, instead of going somewhere else. So when the insurer issues a check for a hail damaged roof, it is made out to both you and the lender, and the bank will not deposit it until both parties have endorsed it.
How do you get the check endorsed?
Call your mortgage servicer and ask for the loss draft or insurance claims department. They will tell you what to send, which is usually the adjuster summary, a signed contract with your roofer, the contractor license and insurance certificate, and a W-9. For smaller claims, many servicers simply endorse the check and mail it back within a week or two. For larger claims, the servicer deposits the funds into an escrow account and releases them in draws, often one third at the start, one third midway and the rest after a final inspection.
How long does the process take?
Small claims typically clear in one to three weeks. Escrow held claims can take four to eight weeks from the first call to the final draw, mostly because of mailing time and the final inspection. The key is to start the day the check arrives rather than waiting until a contractor is selected.
What about the second check for depreciation?
If your policy pays replacement cost, the insurer holds back depreciation until the roof is finished, then releases a second check. That check is often made out to the lender too, so the same endorsement steps apply. Our post on ACV vs RCV roof claims in North Dakota explains how recoverable depreciation works and what paperwork the insurer needs to release it.
Can the lender delay your roof replacement?
Only if the paperwork sits. Hail bruised shingles do not improve through a Fargo winter, and freeze thaw cycles turn bruises into leaks, which we covered in can a hail damaged roof wait until spring. Experienced roofers know the lender process and can often start work on a signed contract while the draw is pending, so the roof is on before the ground freezes.
If you have a hail claim check sitting on the counter and are not sure what to do next, call Dodd Roofing and Exteriors at (701) 831-0710 or visit our storm damage page.
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