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Homeowner Insurance

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Latest post Fri, Jun 9 2017 2:27 PM by ca19lawyer2. 4 replies.
  • Fri, Jun 9 2017 8:30 AM

    • richc20
      Consumer
    • Not Ranked
    • Joined on Fri, Jun 9 2017
    • FL
    • Posts 2

    Homeowner Insurance

    I had a leak in the shower of my home that also effected my office on the other side of the wall of the bathroom.

    Because I have continous flooring throughout my entire home, the insurance company gave me a check to re-floor my entire home, which I obviously did not really have to do. 

    I had a licensed contractor do all the repairs and the total cost came to $5,700, which I have already paid. The insurance company sent me a check for $28,000, made out to myself and the mortgage company.

    I had to fill out tons of paperwork and get an inspection from the mortgage company in order for them to release the check back to me. I did everything they asked, the inspection passed with everything done, yet, they still will not release the check to me because "another contractor could have done work on your home and could come and ask for the money". That seems like a ridiculous thing to say, and seems illegal and impossible for me to prove that another contractor did not come to my home and do the work. No other contractors were hired, and the work is all done.

    What can I do in this situation? Is there a certain type of lawyer I need to contact / hire? I feel like the mortgage company is literally stealing money from me.

     

  • Fri, Jun 9 2017 8:36 AM In reply to

    Re: Homeowner Insurance

    richc20:
    I did everything they asked, the inspection passed with everything done, yet, they still will not release the check to me because "another contractor could have done work on your home and could come and ask for the money". That seems like a ridiculous thing to say, and seems illegal and impossible for me to prove that another contractor did not come to my home and do the work. No other contractors were hired, and the work is all done.

    Doesn't make any sense to me either. I had a claim like that once and as soon as I sent in the paid invoice the mortgage company sent me the money.

    richc20:
    What can I do in this situation? Is there a certain type of lawyer I need to contact / hire? I feel like the mortgage company is literally stealing money from me.

    Any lawyer who practices business and contract law can handle this for you.

    Might only take a few hundred dollars to get a scary looking lawyer letter send to the mortgage company and hope it ends there.

     

    • The right of the people 
    • to keep and bear arms,
    • shall not be infringed.
  • Fri, Jun 9 2017 11:34 AM In reply to

    Re: Homeowner Insurance

    Keep in mind that you're asking us how to deal with a letter that you've described but which we haven't read.  I agree that the part you quoted doesn't make a ton of sense, and it seems to me that the way to deal with it is to get on the phone with the person who wrote the letter and say something like, "what do you mean that 'another contractor could have done the work'?  Only Contractor X did work, and Contractor X has been paid in full and has provided a full, written release.  So what is the issue, and what do you need from me to satisfy yourself that 'another contractor' did not perform any work?"

    It seems to me that the bank might be leery of the fact that the amount of the check is 5x the cost of repair, so the bank may suspect another contractor did some work beyond what Contractor X did.  That's just a guess, though.

  • Fri, Jun 9 2017 1:22 PM In reply to

    • richc20
      Consumer
    • Not Ranked
    • Joined on Fri, Jun 9 2017
    • FL
    • Posts 2

    Re: Homeowner Insurance

    I didn't receive any letter stating this, I was told it on the phone by the claims person handling it. 

    The bank suspecting another Contractor performing work is a legal reason to withhold the money?

    I asked her what that even means, and she just said it another 3 times. That's why I came here. I want to know if this is legal to do based on that reason, because it is the reason they are giving me, and it seems impossible and / or improbable that I am required to prove a negative; ie, that no other contractor performed any work on my house. How would or could I ever prove something did not happen?

     

  • Fri, Jun 9 2017 2:27 PM In reply to

    Re: Homeowner Insurance

    richc20:
    I didn't receive any letter stating this, I was told it on the phone by the claims person handling it.

    Same difference and same solution.

     

    richc20:
    The bank suspecting another Contractor performing work is a legal reason to withhold the money?

    The bank isn't withholding $$; it's withholding a signature and, if, in fact, my guess is right, it's very reasonable for the bank to withhold a signature for this reason.

     

    richc20:
    I asked her what that even means, and she just said it another 3 times. That's why I came here.

    Then you need to talk with someone else who can explain it better.

     

    richc20:
    How would or could I ever prove something did not happen?

    You put something in writing saying that Contractor X is the only contractor you hired, and you request something from Contractor X that says he/she didn't hire any subcontractors and provide those two writings, along with Contractor X's signed, written release, to the bank.

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