Why is my mortgage company on the check?

Because they have a financial interest in the house. The roof is their collateral, so they want to see the money actually spent on the roof rather than on anything else. This is normal and it is in your loan documents.

Does the mortgage company get to keep the money?

No. They hold it and release it to you, generally in stages tied to work completed. Smaller claims are often released in full up front; larger ones usually come in two or three draws with an inspection between them.

How long can they hold it?

The Texas Department of Insurance states that your mortgage servicer must contact you within 10 days of receiving the check, and must send you the check within 10 days of you satisfying its requirements. If it runs past that, you may be entitled to interest. TDI's help line is 800-252-3439.

What do they usually require?

Typically the endorsed check, a copy of the signed contract with your roofer, the roofer's W-9 and proof of insurance, and sometimes a completion certificate or an inspection before the final draw. Ask for the list in writing on day one.

Your Insurance Check Is Made Out to Your Mortgage Company | Texas Roof Claims

The short answer

If you still have a mortgage, your insurer will usually make the claim check payable to you and your mortgage servicer together. The servicer holds the money and releases it in stages as the work gets done. In Texas, once the servicer receives that check it must contact you within 10 days, and once you have met its requirements it has 10 days to send the funds. If it takes longer than 10 days you may be owed interest.

What to do

Call your servicer's loss draft department the day you learn a check is coming, and ask for their requirements in writing
Endorse the check only after you know where it is being sent and have a copy of both sides
Send the contract, W-9 and insurance certificate from your roofer together in one package rather than piecemeal
Expect staged release on larger claims, and plan the job so your roofer is not waiting on a draw
Track dates. The 10-day clocks only help you if you know when they started

What we see in the Hill Country

This is the step that stalls more Hill Country roof jobs than any other, and almost always because nobody started the paperwork until the check arrived. Call the loss draft department before the check does. A roofer who has done this many times will have the W-9 and insurance certificate ready the same day you ask.

Where this comes from

Source: Texas Department of Insurance, home damage claim FAQ. This page is general information from a roofing contractor, not legal or insurance advice. Your own policy governs your claim, and the Texas Department of Insurance help line is 800-252-3439.

Your Insurance Check Is Made Out to Your Mortgage Company

The short answer

What to do

What we see in the Hill Country

Where this comes from

More on roof claims

Straight answers