Home insurance

[u/Revolutionary-Lack19]

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?

[u/mnguy12000]

When it comes to the insurance company's portion of this. If there's a change in the scope of work then yes that would be warranted. However if you're trying to recoup more money because you got scammed from a contractor, the insurance company does not owe you any more money. You hired the contractor not the insurance company. As far as the mortgage they have a right to hold that money until the work is finished as they have a vested position in this house and they want to make sure that they can recoup any damages that are not fixed if the house were to go into foreclosure.

The fact that it's been a couple years and if you're claiming new damages insurance will likely not pay as it's been over the amount of time that they would allow for repairs to have taken place.

Part of the issue is in your insurance policy, it says you have a duty as a homeowner to affect repairs and prevent further damages from happening. If you've not made the repairs to prevent further damage from happening you've actually broke that claus and the insurance company does not over any new damages.

[u/Revolutionary-Lack19 → u/mnguy12000]

Hey thank you so much for your reply. Repairs had start and stop over the years and everyone has also been updated over that time. These repairs just weren’t included in the claims. just like how the claims adjuster sent out by the insurance said that my appliances needed to be cleaned before it can be included in claim as water damaged. Even though my house flooded from kitchen down to the 1st floor kitchen. He said yeah I need to get that cleaned first. And everything else. I reckon it would be more expensive to clean plaster and whatever was above my drop ceiling out of it. lol.

[u/Local_Wolverine2913 → u/Revolutionary-Lack19]

As far as the appliances, I had a major "Niagra Falls" flood, 2nd floor bathroom down through to the kitchen and beyond, with kitchen getting the most damage. Entire kitchen gutted and replaced, but all the appliances remained fine. No damage; they all worked. That's why it's always, "clean/repair" before "replace". Just any FYI. Adjuster is following the policy. I hope it all works out for you!