We received 2 insurance claim checks totaling $47,914.39. As instructed by our mortgage company, LoanCare,LLC, I cosigned the checks and overnighted them on December 23, 2022 with all receipts for materials and work completed to that point. They said they would have to send an inspector out since we had done the repairs and restoration ourselves (my husband is a retired contractor). The inspector came on January 24, 2023. He approved the work and job completion to 85% and said LoanCare just needs to know that their asset is indeed being restored and he would submit his report that night. On January 25 LoanCare claim site showed they had approved his inspection. On January 26 LoanCare claim agent called and said no money would be released to us because we did the work ourselves. When I stated that they had approved their inspector’s report she said she understood my frustration but no money would be released. When I brought up about the thousands of dollars of receipts for materials, etc. she still said no money would be released. I need a lawyer who will help with this mortgage company situation not a lawyer who goes after the insurance companies.
Peggy – We’re so sorry to hear about this frustrating situation. Lenders holding on to people’s insurance proceeds is a chronic problem we are always working to help solve. We strongly encourage you to try Florida’s Division of Financial Services consumer help service: https://apps.fldfs.com/ESERVICE/Newrequest.aspxno Also the Florida Insurance Consumer Advocate: https://www.myfloridacfo.com/division/ica/contactus
No guarantee either agency will have a staff person willing to directly contact your lender on your behalf – but they might. In your state the same agency that oversees insurers oversees banks – and I can assure you – yours won’t be the first complaint they’ve gotten about a lender refusing to release insurance funds to pay for repairs after disasters. We understand this is not about the insurance company’s behavior – but we have seen other state insurance oversight agencies help consumers get releases in this type of situation. It is possible that one of our Florida law firm sponsors will either have someone who will pressure the lender on your behalf or give you a name of a general business lawyer they trust. https://uphelp.org/sponsor-location/florida/