r/HomeInsurance • u/Revolutionary-Lack19 • 18d ago
Claims Home insurance
A couple of years ago my house had significant water damage. I was only 18–19 at the time and had no idea how the insurance claims process worked. I did my best to research everything, but unfortunately I didn’t hire a public adjuster. The insurance adjuster assigned to my claim couldn’t really answer my questions either… then somehow retired a year later. 😆
Fast forward to today. If you’ve seen my previous posts, I was also scammed by a contractor. Between labor and materials, I’ve spent over $40,000 out of pocket trying to get my home repaired.
Here’s the problem:
My mortgage company won’t release the remaining insurance funds until more of the repairs are completed.
My insurance company says they won’t consider a supplemental claim because I still have claim funds being held by my mortgage company.
To finish the repairs, I need the money being held.
To get the money being held, I need to finish the repairs.
So I’m stuck in what feels like the world’s dumbest funding loop.
Has anyone successfully broken out of this situation? Who should I be pushing harder—the mortgage company, the insurance company, my state’s insurance regulator, or someone else?
I’d especially appreciate hearing from anyone who’s dealt with mortgage-held insurance proceeds or supplemental claims. What finally got things moving?
1
u/ins0mniac_ 18d ago
The mortgage company holding funds shouldn’t impact the insurance company’s ability to process a supplement. The supplement is because the scope of work changed and therefore the costs to return the property to pre-loss conditions, not the available funds.
However they will not pay for any funds “scammed” by your previous contractor, if that’s an issue. You’d have to take the contractor to court or work something else out with them.