The delay in receiving insurance proceeds for a property damage claim can be an extremely frustrating experience. The homeowner wants repairs made, and the insurance company wants to make sure it is paying the correct party. As people in Florida have found out, a finance company or bank holding a security interest can hold up payment.
A case in Miami demonstrates the problems incurred when multiple parties are involved. The homeowner suffered roof damage due to Hurricane Irma. A claim was submitted to the insurer, and the insurance company agreed to release a portion of the money to allow the roofing contractor to begin work. The roofer finished a portion of the job.
Later, when the contractor asked for the remainder of the proceeds to finish the job, the insurance company balked. The reason for the refusal wasn't with the insurance company; it was the bank, the holder of a mortgage on the property. The lienholder did so because not all paperwork submitted by the contractor was correct. In this case, the W-9 wasn't correctly submitted. A subsequent W-9 also had errors.
To straighten the matter out, it took the assistance of a local news station to communicate with the insurer and the mortgage company. After months of waiting, proper documents were submitted, the proceeds were paid, and the roofer finished the job.
To someone inexperienced in the insurance claims the paperwork and other documents needed to complete a claim can be daunting. Insurance companies must answer to a mortgage company or bank payee. The bank must answer state regulatory agencies and, in this case, to the IRS.
To prevent delay, it is imperative for the claimant or the contractor to submit the proper documents accurately and timely. Those who are overwhelmed by the experience may want to consider the services of an experienced insurance claim attorney to review the requests for documents, compile the necessary forms and submit them properly.