Can we make our insurance give us our recoverable depreciation funds immediately?

They are withholding a large portion of our repair funds until the work is completed. I don’t understand how they can expect 100% of the work to be completed without releasing 100% of the money to do it. Is there a way we can get the total amount owed to us all at once?

Asked on July 16, 2010 under Insurance Law, Ohio

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

Unfortunately, insurance companies do not give you the total amount upfront.  You are to give invoices and amounts based on the work being completed.  As it is going to be completed or already completed, the draw will be sent to you from the insurance company for payment.  The final payment will cover the remaining portion of the work done.  It is never given completely up front because the insurance company wants to ensure the money is being used for proper and complete repair and therefore the intent is to protect its interest in the property.   If it appears the amounts are delayed significantly or less than what you were promised, file a complaint with your state's department of insurance.


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