It’s a familiar situation for many roofing contractors: insurance claim approved, and first payment issued – but everything is waiting on the mortgage company’s endorsement. The dual-payee provision in most insurance policies typically kicks in for the part of a settlement that pays for the repair if a home or building has sustained damages costing more than $10,000.
While adding the mortgagee’s name to a settlement check protects the bank’s financial interest in the property, the added step can delay rebuilding and repairs. Still more delays can arise if the lender is slow to release funds from an escrow account, where insurance proceeds are usually held to pay contractors. Payments can take even longer in the wake of a natural disaster like wildfires, hurricanes and hail storms.
What can roofing contractors do to speed up the process?
- Have the customer call their mortgage service provider right after filing a claim and find out what procedures must be followed to get the bank to co-sign the check and release funds ASAP. Find contact information on this list of mortgage servicersfrom the Mortgage Bankers Association.
- If the damage is disaster-related, have the customer ask about payment forbearance. Most lenders offer this as an option in the event of a disaster and can ensure insurance checks will be signed if the customer falls behind on their mortgage payments.
- Use iink. As a restoration contractor, you will likely never be able to avoid the dual-payee provision in insurance policies. You can keep payments in check by using a third-party service like iink to manage them for you. We’ve found that iink is by far the smartest solution for roofing contractors who process insurance check endorsements and offers more time saving efficiencies than any other service out there.
Interested in saving more time? Learn about our third-party claims process and how we can help ensure every claim you work is ethically and legally compliant, paid correctly and processed quickly. Have questions or other ideas on how roofing contractors can streamline efficiencies in their business? Follow Balance Claims on Facebook and join the conversation.
