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Loss draft

Posted on: 03rd Jul, 2011 12:04 pm
How will I get the balance under this senerio:

The assessed value of our property was $141,600.00 prior to the storm damage which occurred 4/19/2010. The State Farm adjuster estimated that our out building (garage with unfinished 400 square feet office above) was a total loss. We find ourselves under insured for this portion of the claim $25,000 (Dwelling extension noted in policy number 42-06-1287-1).

We do not have sufficient insurance coverage to remove the oak tree, replace the damaged fence, and rebuild the 1300 square foot structure. We will be reduced removing the tree, replacing the fence to demolition and disposal of the garage.

We realize that Wells Fargo, the mortgage lender, is first loss payee and under normal circumstances would be paid to the extent of the principal balance ($85707.70) of our mortgage loans, with the remainder of the money to us the homeowners.

We are requesting that Wells Fargo waive the partial and/or progress payments. We are requesting the release of the entire $38408.87 disbursed by State Farm Insurance Company.

We already have estimates for the roof replacement, fence repair, and tree removal. We requested that all funds be released for this insured loss and allow the full amount to us to make repairs in lieu of Wells Fargo disbursing funds as repairs are made (roof and siding). I will be acting as my own contractor.

Thanks
Hi briggsel,

Well... you're in a difficult situation. It will depend upon the insurance carrier whether or not it will disburse the whole amount to you. You should contact the insurance carrier and take his opinion in this matter.

Thanks
Posted on: 03rd Jul, 2011 09:52 pm
We recently had tornado damage to our property. The insurance company issued checks with our mortgage lender's name on them. We paid for the construction of our outbuildings out of pocket. They are not on our home loan. Can we force the lender to release the funds for the outbuildings?
Posted on: 11th Jul, 2011 08:43 am
Hi Betsy!

Welcome to forums!

You can ask the lender to release funds for the outbuildings. It will depend upon the lender whether or not he will consider your request.

Feel free to ask if you've further queries.

Sussane
Posted on: 11th Jul, 2011 09:45 pm
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