Insurance question- fire damage on rental

[Isaac S.]

Hi, one of my rentals had fire damage and is insured through Allstate. They were great with the process so far and have a check ready for me, but they said since I have a mortgage on the property they send a check with my name and the mortgage companies name too. They said the mortgage may hold some the money? Has anyone been in this scenario and know how it works?

[Julian Trillana]

I’m actually going through this right now. I had a fire on my 3-flat in Berwyn, and Berkshire Hathaway did something similar to your situation. They sent me multiple checks addressed to me and my mortgage company. I had to mail each check to my mortgage company to sign off each time. I then received the signed checks from the mortgage company and deposited them into my bank.

My mortgage company was withholding some funds until they had their inspector come out and check the progress of repairs. Depending on how far along the repairs are, the mortgage company will release the rest of the funds or send a partial payment (you may need to have another inspection after repairs are complete to release the rest.)

Hope this helps!