I recently received an insurance settlement of about $26K after a hail storm damaged my roof and siding. I'm planning to repair the siding instead of replacing it, which would only cost around $1K, and I'd like to use the remaining funds for other home improvements, like a new front door. However, the insurance check is made out to both me and my bank, and they've put a hold on it, stating they'll issue a check directly to the contractor. My question is, how can I approach the bank manager to convince them to allow me to use the extra money as I see fit, not just for the specific repairs outlined by the insurance adjuster? I'm working with a licensed contractor, and I want to make sure I'm doing everything above board without appearing to pocket cash or defraud anyone. Any tips?
2 Answers
You’re definitely in a tricky situation. Banks usually want to protect their investment, which means they’re cautious about letting you spend the settlement in any other way. They might be worried that if they don’t oversee the repairs, it could lead to bigger issues down the line, and they’ll struggle if they ever need to foreclose. But, it's great that you’re planning to hire a licensed contractor; that might help your case. You could try showing them how your plan to upgrade other parts of the home could actually increase its value. Just keep in mind that if you don't replace what's outlined in your insurance claim, you might run into problems with future claims. Good luck!
I went through something similar and found that consistency is key. It took about 45 days for my bank to release the funds when I submitted everything properly. Make sure you bring all the necessary documentation and maybe even a plan showing how the repairs (and additional projects) will enhance your home’s value. That could make the bank more open to your ideas.