Everyone knows that home insurance will pay to repair or replace a home and its belongings after a covered loss. Undoubtedly, if you file a claim, your insurance provider will reimburse you for the estimated cost of losses. However, what if some money is left over even after repairs? Can the recipient keep the remaining leftover home insurance claim money? Find it out in the following sections.
Often, homeowners assume that they will receive a home insurance claim amount, but unfortunately, that is not always the case. Claim amounts for damaged personal belongings and additional living expenses will be paid to the homeowner. However, if you have a mortgage, both you and your lender are entitled to claim payouts. In such circumstances, you may need to sign the payment and keep it in escrow until the repair work is done and approved for payment.
Besides homeowners and lenders, some people, like contractors and property management companies, can also receive a claim payout.
A home insurance claim process varies from provider to provider depending on the policy type, claim amount, and the extent of the damage. However, generally, you can expect the following:
If your loss includes different coverages, your claim may include multiple payouts. For example, if your home is destroyed by a hurricane, you will receive the first payout for exterior damages, the second payout for replacing lost personal belongings, and the third payout for additional living expenses.
You can keep the leftover claim money, provided you are not asked to return it to your carrier or did not commit fraud to get the money.
If your insurance provider’s payout seems to be less than what your general contractor has estimated, you can negotiate the price with your provider before accepting it. However, negotiating the claim amount may lengthen the claim-processing time, thus delaying repairs or replacements.
Whether a small or large claim, the recipient is entitled to keep the leftover money if they are legally allowed to keep it.
If you are looking for affordable yet best-in-class homeowners insurance in NY and surrounding areas, contact us today at Kneller Insurance Agency. We will help you find the right policy according to your unique needs.