The bank that owns your mortgage may have to endorse your claims check- Amanda explains more.
There are some instances when an extra step is needed before a claim check can be cashed. Whether it is a building or an owner, if the insured has a mortgagee listed on their policy, the claim check needs to be made out to that entity as well as the insured. The insured will need to have the check endorsed by their bank in order to cash the check and have the funds released.
The mortgagee is listed on the check because they have an insurable interest in the property—the building or the home partly belongs to them as well as the insured. In order to have the check reissued without the name of the mortgagee, the insured will have to provide proof that the mortgage has been satisfied. Then an endorsement can be issued removing them from the policy and a check will be reissued without the mortgagee name on it.
For more information, please contact us.