Home Insurance Check Signed Only to Me

[jjm6625]

Got storm damage a few months ago and “yada yada” insurance wrote a check out with only my name on it.

The roofer didn’t think I was going to get much money cause it wasn’t bad in his eyes and my roof isn’t only 2 yrs old n siding looked ok. But said you never know. Insurance adjuster thought otherwise n direct deposited a check in only my name.

Talking to the roofer I don’t want to use the money on the roof n siding but to use it to redo my basement n bathroom.

Lender sent a letter saying they got a letter that a claim went in on the house and to contact them.
Do I have to do the work if it was only in my name? I get the lender is invested in the property as well but feel it’s in both our interests to improve another area of the house.

I’ve been looking around the internet but haven’t found anything with this circumstance.

Would the bank just send an inspector out to say yeah I agree roof n siding is fine?
I’m worried if I call the bank I’m going to get locked in replacing a brand new roof that is ok.

 

[ifitry]

@jjm6625 it's possible that your insurer's underwriting department will want proof of repairs and when you can't provide it, they will nonrenew your policy which is may be very damaging to your future insurability

it's also likely that you're forfeiting recoverable depreciation by not completing the repairs

the bank does not care about improvements; they care about maintenance and repairs that protect the structure

also want to pin this post for everyone else who comes into this sub bitching about their rate increases -- as if inflation, supply chain issues, and increasingly extreme weather aren't enough to deal with, add bogus claims to the list

 

[dooks]

@jjm6625 If there is a mortgage company they should have been on the check.

If you use that money for the basement, and something happens to the roof and the siding in another storm or whatever, of those repairs were not made they won't pay you for that again.