Claim Insight: I Just Accepted an Insurance Check—Now What?
Getting that insurance check in your hand after a property loss can feel like a relief. But don’t let the relief turn into confusion. Once the check arrives, you’ve still got work to do, especially if your mortgage company is listed on the check or you’re about to start repairs.
Getting that insurance check in your hand after a property loss can feel like a relief. But don’t let the relief turn into confusion. Once the check arrives, you’ve still got work to do, especially if your mortgage company is listed on the check or you’re about to start repairs.
Let’s break down exactly what needs to happen next, who you’ll need to involve, and how to avoid the most common (and costly) mistakes.
1. Understand What the Check Covers
First things first—read the accompanying documents. The check you received may only be part of your total settlement. Insurers often issue multiple payments:
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ACV (Actual Cash Value): This is typically what you receive up front.
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RCV (Replacement Cost Value): This comes later, once repairs are completed and receipts are submitted.
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ALE (Additional Living Expenses): If you’re displaced, this may be issued separately.
Tip: Compare the check amount with your settlement documents or claim summary to ensure it aligns with what was agreed upon.
2. Check for Mortgage Company Endorsement
Is your mortgage company listed on the check? If so, you can’t just deposit it and start spending. Since your lender has a financial interest in the property, they’re typically co-payees on insurance funds over a certain threshold.
Here’s what to do:
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Contact your mortgage servicer immediately.
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Ask for their loss draft department or claims processing instructions.
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Be prepared to fill out forms, submit your contractor’s estimate, and provide a copy of your insurance claim documents.
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Many lenders hold the funds in escrow and release them in stages as repairs are completed.
Tip: Stay organized. Set calendar reminders to follow up—these processes can drag if you’re not proactive.
3. Hire the Right Contractor(s)
You’re ready to start repairs, but choose wisely. It’s not just about cost—it’s about:
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Experience with insurance claims work
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Willingness to provide documentation for your mortgage company or insurer
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Clear payment terms that align with your disbursement schedule
Tip: Never pay 100% upfront. A legitimate contractor should work with you on a milestone-based payment schedule.
4. Know the Timing for Recoverable Depreciation (RCV)
If your policy includes replacement cost coverage, you’ll likely receive a second check after you prove that repairs have been completed. This is known as recoverable depreciation.
To get it:
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Complete repairs
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Gather detailed invoices and receipts
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Submit them to your adjuster with a request for RCV reimbursement
Tip: Most policies have a timeline—often 180 days—to complete repairs and request depreciation funds. Don’t wait too long.
5. Track Expenses & Communications
Start a digital or physical folder for:
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Contractor invoices and receipts
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Emails with your insurance adjuster and mortgage company
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Copies of permits, inspections, and payment confirmations
This is your evidence trail. It keeps you on track for reimbursements and protects you in case of disputes.
6. Plan for the Unexpected
Delays happen. Contractors get backed up, weather interferes, and sometimes estimates fall short.
Tip: Don’t commit all your ALE (Additional Living Expenses) budget or hold back funds for a project upgrade. Use your insurance proceeds exactly as intended and consult a claims expert before making major decisions.
Final Thoughts: Keep the Momentum Going
Accepting the insurance check isn’t the finish line—it’s the starting gun for your recovery. The faster and more precisely you move through these next steps, the sooner you’ll be back to normal. And if things start to feel murky or complicated, don’t hesitate to reach out to a public adjuster or claims consultant for clarity.
Need more help navigating the post-claim chaos? Tugboat Claims is here to guide you through the fine print, forms, and follow-ups—without the sales pitch.
Disclaimer:
Tugboat provides guidance and support but does not operate as a licensed public adjuster or attorney. Tugboat does not negotiate or adjust claims on your behalf. The information provided is intended to empower you in managing your own claim, but it is fully your responsibility to pursue and handle the claim. Tugboat is not responsible for claim outcomes. Any tools and resources provided are based on the information you provide, which may be incorrect or incomplete.
Need expert guidance on a homeowner’s insurance claim? Tugboat Claims is here to help!
