Insurance vs mortgage co vs builder Valerie Richard asked 1 month ago
Insurance vs mortgage co vs builder

My house was lost in the Marshall fire. Although I have full replacement insurance, I continue to have insurance funds withheld by my mortgage company because the “scope” provided by the insurance adjuster to the mortgage company is incorrect. This is what the mortgage inspector bases his inspection on. The scope provided only has 3 line items: Excavation, Rebuild and “trees and shrubs.” My insurance adjuster doesn’t seem to know what a full scope is, but the inspector tells me it is a list of all the items, room by room, everything that needs to be done to repair the home, and should be provided by the adjuster to the mortgage company. My funds are withheld until the correct scope is provided, and the inspection can reflect the correct progress, which description of which is not on the current scope. My progress keeps coming back at 11% when it actually is 50%.

So far, the mortgage company is holding over $300,000 of my insurance funds. And I need that money to pay the builder to finish the house.

Please advise what I need to do to break this stalemate. Thank you very much!