Home Insurance Claim Checks in 2025 (Read Before You Settle!)
Home insurance claim checks are settlement checks provided by your insurance company for a covered loss. Before insurance claim check cashing, it is important to verify that the amount covers your losses. Protect your home and belongings with the best home insurance, starting at $61 per month.
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Ty Stewart
Licensed Insurance Agent
Ty Stewart is the founder and CEO of SimpleLifeInsure.com. He started researching and studying about life insurance when he got his first policy for his own family. He has been featured as an insurance expert speaker at agent conventions and in top publications. As an independent licensed insurance agent, he has helped clients nationwide to secure affordable coverage while making the process ...
Licensed Insurance Agent
UPDATED: Jan 31, 2025
It’s all about you. We want to help you make the right legal decisions.
We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.
UPDATED: Jan 31, 2025
It’s all about you. We want to help you make the right legal decisions.
We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.
On This Page
Home insurance claim checks are checks issued from your home insurance company for home losses or damages in a covered claim. You may get the claim amount in several checks, but insurance settlements may also be issued in just one claim check.
While it is nice to get your home insurance check, do not rush to the finish line. Before you sign any claim release waivers from your home or renters insurance company and cash the check, make sure your property insurance claim settlement covers all your damages.
Find the best home insurance before you have to file a claim by entering your ZIP in our free tool.
- A home insurance check is a payment issued for a covered claim
- Most insurance companies will list your mortgage company on the check
- Don’t accept a claim check until you’ve verified the amount
Home Insurance Claim Checks Explained
A home insurance claim check is a check from your home insurance company for a covered claim. The amount is calculated off the estimated amount of damages and your coverage amounts.
If you have multiple repairs to make to your home, most insurance companies will issue a series of checks over time. For a simpler claim with a lower settlement amount, however, some companies will issue just one check with the lump sum.
Read More: What does your home insurance coverage do for you?
If the check amount seems too low, make sure to call your insurance company to see if the check is part of an installment or the full settlement amount before cashing it.
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3 Steps to Take Before Accepting a Home Insurance Claim Check
Before cashing a home insurance check, it is important to follow certain steps to ensure the amount and payees are correct. Once you cash the check, your options to correct mistakes become much more limited than if you deal with them before home insurance claim check cashing.
Learn More: How to Navigate the Home Insurance Claims Process
Once you have verified that the amount and other information are correct, you can take the check to your bank to cash. Read on for a breakdown of what to do before accepting a check and common homeowners insurance claim check questions.
Step #1: Verify Claim Check Amount
Being patient is the most important thing throughout the house insurance claims process. Even when the end is in sight, take your time and make sure you are getting the appropriate value to repay your loss.
Before you accept a home insurance settlement from the insurance provider, be sure that any amount paid to you in the home insurance check will cover all of your repairs. Go over your losses, read your policy, and make sure the company is paying you appropriately. It is also important to make sure your house insurance check covers any contractor bills.
If your contractor is charging more for repairs of property damage than your company will pay, ask the insurance adjuster to talk directly with the licensed contractor to determine what the differences are between the two estimates (Read More: Homeowners’ Legal Options When Using Unlicensed Contractors).
Kristen Gryglik Licensed Insurance Agent
If you are concerned about what to know before you accept a home insurance check, you should look for insurance help. If you’re not satisfied with an insurance company’s offer, you have the right to take legal action. Hiring an attorney and threatening to file an insurance claim check lawsuit can sometimes be enough to convince an insurance company to extend a reasonable settlement.
Step #2: File For Supplemental Checks if Necessary
If, while working through your repair, your contractor discovers hidden damage that could not be seen during your home insurance inspection, you will need to request a supplemental home insurance check for the additional damage.
Notify your claims insurance adjuster that additional damage was found related to this claim. They may do another home insurance inspection to review the additional damage, or they may ask that you have the contractor write up a supplemental estimate for the work.
Once the additional information is reviewed and the estimates seem in line, you will be issued a supplemental home insurance check for the additional damage.
If, by chance, your claim was a home insurance liability claim where you were the injured party or your property was damaged by the homeowner, obtaining a supplemental home insurance check may be a little more involved (Read More: Why You Need Home Insurance Liability Coverage).
Follow the same steps above by letting the insurer know as soon as possible that you have additional damage or medical bills that need to be considered under the claim. They, again, may request a home insurance inspection. In the case of injury, they may request additional medical records or copies of the bills.
If you have already accepted the home insurance settlement and provided a signed waiver of release to the insurance company, as well as cashed the homeowners insurance settlement check, you may be out of luck. It is imperative to read carefully and understand all the language in any release form before signing or cashing your home insurance claim check.
Jeffrey Johnson Insurance Lawyer
If you have any homeowners insurance claim check questions, feel like your insurance provider is not paying you fair value, or need additional insurance money to repair damages or for injuries not previously discovered, you can have an attorney review your case.
According to insurance check cashing laws, if your insurer gives you a check for covered repairs, state law may prevent you from getting the money for several days.
Step #3: Check Payees on Check
Depending on the amount of the damage, the insurer may pay you directly or include your lender as an additional payee on the check (if you have a mortgage on your home). If you find your home insurance check has both you and your lender listed as a payee, contact your lender right away and ask how to go about getting the initial claim check endorsement from them.
The home insurance claims process for each lender can be confusing, requiring documents that your contractor must fill out (W-9, repair affidavits, lien waivers), and depending on the amount of your check, your lender may hold the funds in a restricted escrow, issuing payment to your contractor only upon completion of the work. This is all done to protect the lender’s financial interest in the property.
Once the repair work is completed, the lender will have a home insurance inspection performed on their own to verify the completion of the work. Only then will they issue the home insurance check from your restricted escrow to pay the contractors for the repair of covered damages.
If the work is done and the repair comes under budget, you are sent the remainder. The mortgage company cannot keep the proceeds of a settlement to cover your loan balance according to insurance check cashing laws. However, they can hold onto the funds and release them as needed until the inspections and repairs are complete, as you can see in the comments of the Reddit post below.
Mortgage Company is cashing my Insurance Claim check and giving me less
byu/DemonaDrache inInsurance
Make sure you completely understand the mortgage company’s policies upfront to avoid delays, especially if your mortgage was recently undertaken by another company (Read More: Rights When Your Home Mortgage Loan is Sold and Assigned to Another Lender). Ask your contractor to fill out the paperwork as soon as possible. Above all, make yourself available for all home inspections. This will ensure timely payments.
Cashing a Home Insurance Claim Check
If you are satisfied with the claim check amount after checking it against your losses and coverage, you can deposit the insurance check. Having great coverage, like umbrella coverage, will make it more likely that you will receive a satisfactory claim check settlement (Read More: How Umbrella Insurance Coverage Can Save You).
Before you cash the check, however, you will first need to check if your mortgage company is listed on the check. Your lender may have to endorse insurance checks before you can cash it because the home belongs to them until you completely pay off your mortgage.
If your mortgage company is listed, you will need to know how to cash an insurance check with a mortgage company. In most cases, you can simply take it to your mortgage office to have them endorse the check so you can cash it. If your mortgage company isn’t near you, contact them for assistance with the insurance check endorsement. You may be able to mail them the check for endorsement.
As for how to cash an insurance check without a mortgage company listed, the process is much easier as you don’t need your mortgage company’s insurance claim check endorsement. While you may be able to cash it online from your bank’s app, most banks have a limit on the amount, so you may have to visit your bank in person to cash your home insurance check.
Finding the Best Home Insurance for Claims
It is important to have a good home insurance policy that will provide adequate coverage when you need to make a claim. Choosing a good home insurance provider before a disaster happens will make insurance claim check cashing easier.
Choosing adequate coverage amounts from a good company will also ensure you don’t have a low claim settlement due to insufficient coverage.
While the best way to find out what you’ll pay for home insurance is to get quotes, some top home insurance providers and their average rates are listed below.
Homeowners Insurance Premiums by ProviderInsurance Company | Monthly Rates |
---|---|
$75 | |
$92 | |
$93 | |
$107 | |
$64 | |
$113 | |
$63 | |
$61 | |
$120 | |
$88 |
When choosing a provider, make sure also to consider their claim ratings, overall financial health, and customer reviews.
You’ll want to pick a company that has an easy, well-rated claims process to make the process go smoother.
Don’t just go with the cheapest home insurance company unless they have good ratings (Learn More: How to Keep Your Homeowners Insurance Rates from Increasing).
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3 Case Studies: What to Know Before You Accept a Home Insurance Check
Following the process of cashing a home insurance check is important, so we want to go through a few different scenarios, from burst pipes to fire damage (Read More: Home Fire Insurance Coverage).
Case Study #1: Insufficient Coverage
Emily’s home was severely damaged by a powerful storm that caused significant structural damage to the roof and the interior of the house. She promptly filed a home insurance claim to seek coverage for the necessary repairs and restoration. The insurance company sent an adjuster to assess the damages and determine the appropriate settlement.
After a thorough inspection, the insurance adjuster calculated the cost of repairs based on their assessment and the terms of Emily’s insurance policy. The insurance company then issued a home insurance check to Emily, which was meant to cover the estimated repair costs.
Rachel Bodine Feature Writer
However, when Emily received the check and reviewed the settlement, she noticed that the amount offered was much lower than she had expected as she had limited home insurance coverage (Read More: How much homeowner insurance coverage do I need?).
Case Study #2: Mortgage Lender Involvement
Mark, a homeowner with a mortgage, experienced a devastating fire that caused extensive damage to his property. He promptly filed a home insurance claim to seek coverage for the necessary repairs. After going through the claims process, Mark received a home insurance check from his insurance company. However, upon reviewing the check, he noticed that it was made payable to both him and his mortgage lender.
Confused about the involvement of his lender and the next steps to take, Mark reached out to his lender for clarification. The lender explained that, as a mortgage holder, they have a financial interest in the property and are entitled to ensure that the insurance proceeds are used for the necessary repairs. In order to release the funds, the lender required certain documentation and endorsements.
Case Study #3: Supplemental Damage Discovery
Sarah, a homeowner, experienced water damage in her house due to a burst pipe. She promptly contacted her insurance company to file a home insurance claim to cover the damages. An insurance adjuster was sent to inspect the property and assess the extent of the water damage.
Upon the adjuster’s initial inspection, they evaluated the visible damages caused by the burst pipe, such as water-soaked drywall, damaged flooring, and affected personal belongings. Based on this assessment, the adjuster estimated the cost of repairs and issued a home insurance check to Sarah to cover these damages.
Learn More: How to Negotiate the Best Home Insurance Settlement
However, as Sarah’s contractor began the repairs, they discovered additional hidden damage that was not initially visible during the adjuster’s inspection. The hidden damage included mold growth behind the walls and damaged electrical wiring that had been exposed to water. Sarah understood the importance of addressing this damage to ensure the safety and integrity of her home.
The Importance of Properly Checking a Home Insurance Check
A home insurance check is your insurance company’s settlement for a covered claim. You will often receive it in the mail and may have to have your mortgage company endorse it.
Before cashing your homeowners insurance settlement check, however, make sure you check the amount against your policy and repairs. If the settlement is too low, apply for a supplemental check. Once you are happy with the amount, you can proceed with cashing insurance checks.
Before disaster strikes, like plumbing problems after a home purchase, protect yourself with an affordable home insurance policy. Use our free quote tool to start shopping today.
Frequently Asked Questions
What is a home insurance claim check?
A home insurance claim check is the settlement amount from your insurance company for a covered claim.
How long does it take to get a check from homeowners insurance?
Based on the state law and the state you live in, insurance companies may take up to several business days or even several months to issue a home insurance paycheck after filing a home insurance claim. Some states require insurance companies to pay in a reasonable amount of time, whereas others allow insurers up to 40 days to accept or deny your home insurance claim.
Is there a home insurance claim deadline?
Most often, each insurer will have a deadline by which you must claim your loss and submit a home insurance claim.
You can clear this up with your insurance claims adjuster in order to make sure you don’t miss any deadlines and risk denial (Read More: What to Do When Your Home Insurance Claim is Denied). So ask about what procedures the insurance company takes and follow up regularly to ensure they have all the necessary info.
Why is the insurance check made out to me and my mortgage company?
Insurance companies often make checks out to you and your mortgage company. Having mortgage companies endorse checks allows mortgage companies to make sure that the funds are used to repair the home.
Can my mortgage company keep my insurance claim check?
A mortgage company can keep the check until repairs are completed, but they can’t keep the check after that or hold on to any unused funds.
Is there a home inspection after an insurance claim?
Yes, after you make a claim, an insurance adjuster will visit to assess the damages for the home insurance claim inspection. They won’t ask for any personal information like your social security number, but they may ask questions about the damages (Learn More: Should I give an insurance adjuster my social security number?).
How long can a mortgage company hold an insurance check?
Generally, a mortgage company can hold an insurance check until the repairs are completed on a home.
Where can I cash my insurance claim check?
You can cash your insurance check at your bank. Use our free quote tool to find home insurance coverage to protect yourself today.
How long does an insurance claim check take to arrive?
Once your claim is approved, your insurance company will likely mail the check. Your home insurance agent or adjuster will contact you to let you know a timeframe for its arrival (Learn More: How to Find the Right Homeowners Insurance Agent).
What if the insurance check is more than the repairs?
If this happens, you need to contact your insurance company to let them know.
Can I keep my homeowners insurance claim check and make the repairs myself?
In most cases, you can make simple repairs yourself. However, you will need to check with your insurance company first, as some companies will offer a lower amount or require that contractors make complex repairs.
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Ty Stewart
Licensed Insurance Agent
Ty Stewart is the founder and CEO of SimpleLifeInsure.com. He started researching and studying about life insurance when he got his first policy for his own family. He has been featured as an insurance expert speaker at agent conventions and in top publications. As an independent licensed insurance agent, he has helped clients nationwide to secure affordable coverage while making the process ...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.