Please help! We filed an insurance claim for our roof. The insurance company listed the roof, siding and gutters as all needing to be replaced. However , they only gave us enough ACV money for the roof to be replaced. They only gave ACV because"it’s been more than a year since the last damaging storm" according to them. We had the roof replaced (which cost the entire ACV amount) but the mortgage company is saying only 65% of the work listed in the claim has been done and are only releasing that amount of money. We are stuck between the roofing company and the mortgage company and will have to pay out of pocket the rest of the money for the roof or have a lean placed against our house. How can we get the mortgage company to release the rest of the money? Should we pay of pocket and "hope" someday the money will get released to us since it does not belong to the mortgage company?
Michelle Basgall asked 2 weeks ago Settlement of your roof damage claim is dependent on the verbiage of your policy. If you have only Actual Cash Value for this type of damage, then the carrier can depreciate the damaged materials based on their age and typical lifespan and issue an ACV (Actual Cash Value payment). If you have Replacement Cost Value, then the carrier will release the ACV payment initially until you provide documentation substatiating the completion of repairs; the carrier would then issue a supplemental payment for any depreciation initially ‘held back.’
The lender is interested in making sure the repairs have been completed fully (roofing, gutters, etc) and will require you to provide this documentation. Ask the lender to provide documentation as to their’65%’ rating.. What is missing? What hasn’t been repaired or replaced to their satisfaction?
You would be responsible for paying the difference between the actual cost of repairs and what the carrier paid you and providing this documentation to the lender in order for them to release any insurance money held in escrow back to you. Sometimes this means paying your contractors up front and then following up with your lender directly. Best of luck.