How can I get the excess funds of an insurance claim back from my mortgage company?

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

How can I get the excess funds of an insurance claim back from my mortgage company?

I have a sinkhole claim which my insurer is paying on. They will pay the company doing foundation stabilization directly, but have issued checks payable to mortgage company and me for cosmetic damage which mtg company is holding in escrow. Once I complete the repairs (hopefully for less than the insurance company estimates), how can I ensure the mtg company sends me any left over funds. They are telling me that they will send excess funds back to insurance company. Insurance company said that they have not had a situation like that before.

Asked on May 10, 2011 under Real Estate Law, Florida

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

There may be no way to make this happen. Technically, the insurer is only liable for paying for the cost of repairs and compensation for any unrepaired damage. If the repairs are made, the insured is not necessarily entitled to any additional money or funds--the insurer is not obligated, for example, to compensate for cosmetic damage that does not impair value in a material way, or to compensate for inconvenience, etc. If the repairs are made, there is no unrepaired damage, etc., then there really isn't any ground for insisting that you receive additional monies. While it is unusual for surplus funds (if any) to be returned to the insurer, it does not appear that doing so is actually improper.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption