I am claiming on my home insurance and they want to pay the contractor direct?? can i insist they pay me? ?

i am claiming on my insurance after my front wall of my house was damaged with my car, i have recieved a quote from a contractor. the ins comp are happy with the quote but are sending me a cheque in the contractors name?? what if he gets the cheque and does arunner?? is there another way around this?

Most insurance companies now deal with the contractors to try and prevent people fiddling the insurance companies. Just keep hold of the cheque until you are satisfied with the work that is done. Most companies that deal with insurance jobs are very good at doing the work with minimal hassle because they can make a lot of money from the insurance companies and keep them busy.

The insurance company calls the shots. The contractor should not be paid in full until the work is completed.

I assume you have a mortgage.

In that case, the only other option is for them to make the check payable to you and your mortgage company.

You will then have to send the check to the mortgage company to sign off on. The mortgage company may require that you provide proof that the work has been completed before they sign off on the check.

It's going to be an easier process to have the check issued to you and the contractor.

Can you get the check in just your name? No.

Why?

Well, when you have a mortgage on your home a loss payee clause is automatically added to your policy. This protects the mortgage companies interest in your home (you owe the part you have paid for....they owe the part you have not paid for). As a result, you policy - the insurance contract- says that your insurance company has to protect the mortgage companies interest. If they fail to protect the mortgage company and you do not do the repairs and stop paying for your mortgage resulting in foreclosure.....the mortgage company will have a contractual right to come back after the insurance company and make them pay to repair that damage a second time. Sorry, but the insurance company is not going to take that kind of a risk.

So - you either get a check with the contractor name on it (in which case, I'd ask for a 2 party check -- me and the contractor so that I have to endorse it before he can get paid .....that way I can make sure I am satisfied with the work and it keeps him from running off with the check. You can also ask them to mail the check to you. You can't do anything with that until the contractor endorses it so he's protected and has a guarantee that he will get paid for the work he does.)

or

You get a check made out to you and the mortgage company (who usually will require you to mail the check to them b/c they probably will not have a location near by where you can take it.) Also, depending on the size of the check the mortgage company may not just endorse the check. They could give you some of the funds....you do work....they send an inspector out to check the work......then they release a little more money to you....you do the work...they send the inspector back out to make sure the work is getting done. Contractors really hate it when it gets handled like this.

Simply ask the insurer to make the cheque co-payable to both you and the contractor. That way, YOU can't run with the money, and neither can HE.

try and get the work finished first never part with the cheque ,contracters are notorious for starting a job then leaving it half finished

The check should be in both your name, and the contractor's name. You show that to your contractor, and you hold it until the WORK is all done. That's his guarantee that he WILL get paid, and YOUR guarantee that he won't stiff you on the work.

If they make the check out directly to you, they'll have to list your mortgage company on it. Assuming it's your insurance company. If it's the CAR'S insurance company, you CAN ask them to make the check out to you.

it correct that the insurance company sends you a check, and my advice is not to give him the check until the work is complete , show him the check by all means but do not hand over the check until you are satisfied with the work, but if like me , i did some of the work myself and asked the builder to put it on the price , you are going to have to ask him for the money and the hand over the kite.

possess as much information as you could maybe is one of the options,however it is quite time consuming,here http://www.CarInsuranceFree.info/free-car-insurance.htm is the resource i have ever had good experience.

Your company's primary responsibility is to you, not your contractor. Therefore, your name should be included on any check that is issued for your damage. Unless, of course, you've already signed an authorization for direct payment of your contractor (which contractors often like to slip in with other job related paperwork).

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