by Guest » Mon Sep 23, 2013 06:18 pm
My husband and I filed a claim against our home owners insurance. The problem is that the previous owner did not install a shower pan in the shower when he remolded and as a result, we have water damage to the bathroom and need a new shower and tile floor installed. We received an estimate, submitted it and now everything is pending approval through the insurance company.
My question is....
If a check is issued for the repairs, which is somewhere in the ballpark of 15k, will the check be made out to my husband and I only or will the check also list the Mortgage company? The estimate we received is from a licensed contractor but my husband can do the repair work himself. I have seen conflicted opinions about this and would like to know what others have experienced.
Thanks!!
My question is....
If a check is issued for the repairs, which is somewhere in the ballpark of 15k, will the check be made out to my husband and I only or will the check also list the Mortgage company? The estimate we received is from a licensed contractor but my husband can do the repair work himself. I have seen conflicted opinions about this and would like to know what others have experienced.
Thanks!!
Posted: Mon Sep 23, 2013 06:40 pm Post Subject:
First, your insurance is not likely to cover the loss, since this is not an accidental cause. If they do pay the claim, if your mortgage lender is listed as a loss payee/additional insured, as they should be, the check should be made payable to both the lender and you. If they don't pay the claim, then you can sue the person you bought the home from. Whether you win or not is a different story.
Can the lender require all repairs to be done by a licensed contractor? Yes, if the mortgage contract says so. I would be willing to bet you never read your mortgage contract and cannot answer that question, because the only thing people are interested in is closing the loan, not the details.
No one here has read your mortgage contract, so we can't answer the question either.
Posted: Tue Sep 24, 2013 04:40 am Post Subject:
First, your insurance is not likely to cover the loss, since this is not an accidental cause
I think that is a good point and it may not be covered. However, it's accidental in respect to the OP.
I think it stands a good chance of being denied as well. If the lack of a shower pan created the leak then it was designed to leak and the "damages" existed from the moment the prior owner turned the water on in the shower. So the damage occurred prior to the policy period (there was no "accident" within the policy period). Now if the shower _started_ to leak for some reason then it's probably wear and tear and not covered. I suspect that the drain was working but failed very quickly because of no shower pan. I suspect that the insurance company (should) send out a reservation of rights letter for accidental damages, losses that occurred prior to the policy period and wear/tear being excluded under the policy and then deny coverage for wear/tear.
If a check is issued, it should included the mortgage companies name.
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