Your homeowners insurance policy is a contract with specific legal parameters. You agree to pay your insurance premiums, and your insurance carrier agrees to pay for covered losses. Whether you can keep your homeowners insurance claim check and make the repairs yourself depends on your policy’s details and guidelines. The best way to understand how you can use an insurance payout is to ask a lawyer to clarify for you.
Your right to keep an insurance payout and make your own home repairs could depend on multiple factors. First, ensure you have the skills needed to complete the repairs, including getting the required permits, meeting local building codes, etc. Secondly, consider consulting a Florida homeowner insurance lawyer to understand the legalities of your intentions. Most local law firms will review your case at no cost to you.
Read Every Page of Your Homeowners Policy
Just as your home differs from others, your insurance policy could also vary from those of your friends, family, and neighbors. Before deciding to keep a property damage claim check and undertake your own home repairs, start by reading your policy in detail.
Some policy details that might hinder you from keeping the claim check include:
- Your policy may require using professionals
- Local regulations may require permits and bonds
- You could risk voiding your insurance policy
- You may need permission from your mortgage company to perform DIY repairs
In addition, if you don’t hire professionals, your carrier may suspect insurance fraud, triggering an investigation. Since your policy is a legally binding contract, you must abide by its regulations. Failure to do so could lead to an increase in your premiums or even cause your insurance provider to cancel your policy or refuse coverage in the future.
Ask a Local Homeowners’ Insurance Attorney to Clarify Insurance Policy Jargon
The legal and insurance jargon in your policy can be challenging to comprehend fully. The best way to ensure you understand your policy is to let a Florida property damage lawyer examine a comprehensive copy of your policy.
They can clarify your rights, define legal terms, and assess your right to keep the claim check and make repairs on your own. A lawyer can also help you fight for maximum compensation when you file a claim by negotiating on your behalf.
Appraise the Damage to Your Home Before Using a Claim Check to Make Repairs
DIY home repairs, when done incorrectly, could be more expensive than getting professional repairs in the first place. Depending on the type of damage your home sustained, its repairs could require more than one specialist.
In addition to any structural damage, your home could require:
- Mold abatement
- Electrical repairs
- Landscaping repairs
- Flood drainage
At the very least, consider hiring professionals to oversee and inspect the repairs you intend to make. Also, remember that your homeowners insurance company will send a claims adjuster—and possibly a home inspector—to assess the damage and define its value.
Consider the Impact of DIY Repairs on Future Property Damage Insurance Claims
Repairs you make outside of the insurance company’s recommendations, including DIY repairs, could lead to potentially costly issues in the future.
Common home insurance claims that could require professional repairs include:
- Wind damage
- Hurricane damage
- Water or flood damage
- Hail damage
- Fire damage
- Sinkholes
- Tornado damage
- Mold damage
Consider this: If you repair your own home and have to make another claim for damage it sustains in a future event, the insurer might question how effective your repairs were, which could leave you paying out of pocket and may even void your policy.
You May Not Have Final Control Over Your Homeowners Insurance Claim Check
According to the Insurance Information Institute (III), other parties—co-signers, co-insureds, and mortgage and lien holders—have a vested interest in your property and may also have a say in how you use the insurance money, especially if the amount is substantial.
- The insurance check might be made out to you and your mortgage lender, requiring their endorsement to use it. Lenders often require this step to ensure repairs are made correctly and protect their financial interest in your property.
- After a total loss, your insurer might pay off your mortgage, and you will receive any remaining insurance proceeds. If that happens, you can use the remainder to make repairs, relocate, etc.
- Your insurance company might opt to pay the licensed contractor(s) directly, meaning how the money is spent is beyond your control. Having a third party in control of an insurance payout is risky, so you may want to avoid this situation if possible.
These factors can make choosing to keep the homeowner insurance claim check and make the repairs yourself more challenging. Consider speaking to a local law firm before reaching a final decision.
A Homeowners’ Insurance Claims Attorney Can Clarify Your Policyholder Rights
After a fire, natural disaster, or other damaging event, your priority is to repair your home and start putting your life back together. Florida Statutes § 627.7142 describes your rights as a Florida homeowner. Hiring a property damage attorney can ensure the insurance adjuster respects your rights and gives your claim the attention it warrants.
Your lawyer can:
- Communicate with the insurance company for you
- Obtain, complete, and submit insurance claim forms
- Protect you from any bad faith insurance practices
- Carefully document the value of your covered losses
Taking on a huge insurance company can be daunting. In the aftermath of a natural disaster, they might be inundated with claims. A Florida bad faith insurance lawyer can prevent your claim from being lost in the shuffle and fight for the compensation you need and deserve.
Get Legal Support for Your Homeowners Insurance Claim
If your home sustained damage in a recent event, you can file a claim with your insurance company. If you are considering keeping the check and doing your own repairs, our property damage lawyers can help you understand your options and walk you through the homeowners insurance claim process.
Find out if you can keep your homeowners insurance settlement check and make the repairs yourself. Contact our consultation team at GED Lawyers to learn more about your options with a free insurance claim evaluation.
