How to Cash Insurance Check without Mortgage Company | Expert Guide

You’ve experienced damage to your home, and you’ve worked with your homeowner’s insurer to get the coverage you need. At this point, you need to learn how to cash insurance check without Mortgage Company.

You’ve also gone through hiring a contractor to finish the job, and now it’s time to start paying for it. Do you see a check made to your mortgage company as you open the envelope? Or, when you open the check from your insurance company, you find a check made out to your mortgage company.

You can’t process a check for home repair that your insurance company issued you since your name isn’t on it. How can you convert that check into cash so you can pay your contractor to fix up your house? This article will teach you how to cash insurance checks without a mortgage company.

Why was your Mortgage Company’s Check made out to you?

How To Cash Insurance Check Without Mortgage Company

If the check gets made to the mortgage company that owns a piece of your house, there may be a cost limit on repairs, and who must approve the check if it isn’t made out to you.

Many companies have a $10,000 barrier; if the repairs are modest, the check will not need approval from the mortgage broker, but it will be more excellent. This happens because the mortgage provider owns a property and has a financial stake in its upkeep.

If you’re married and both of you have a homeowner’s insurance cover, the check will be in your name as well as your spouse’s. Each person whose name appears on the check must endorse it before being cashed.

How to Cash Insurance Check without Mortgage Company: Important factors

How To Cash Insurance Check Without Mortgage Company

When you file an insurance claim for damage to your house, automobile, or other personal property, your insurance firm will usually send you a check for the amount you are owed.

But, before you hurry off to cash the check without consulting your mortgage company, think about a few factors that might affect your insurance coverage now and in the future. These are some of them:

Understand your policy

To guarantee that the refund amount you got is proper, you must have a complete grasp of your insurance coverage. Make careful to inspect the damage to your house and review your insurance policy conditions to see whether you’re getting all of the benefits you’re entitled to.

Be aware of your legal rights

An insurance agreement’s terminology might be challenging to decipher, so be sure to understand all of the restrictions. In many situations, accepting a check from your insurance carrier to pay the cost of damages waives your claim to further reimbursement for the incident.

This implies that any new incidents tied to the last issue will get excluded from insurance coverage. If the cost of your repairs exceeds the amount covered by your insurance, you will be responsible for the difference.

You have every right to negotiate the amount of your compensation. So, if you believe you should be getting more money, you should contact your insurance carrier to start the appeal process.

Have a conversation with a representative

If you have any questions regarding your rights or don’t understand the precise rules of your insurance policy, you should contact your insurance agent as soon as possible.

This will make it simpler for them to clarify everything to comprehend it. Make sure you understand your policy and your rights to obtain the appropriate amount of money for your requirements. If you have any questions, contact your insurance agent.

How to Cash insurance check without Mortgage Company: Additional Tips

How to Cash insurance check without Mortgage Company: Additional Tips

You may begin the process of cashing the check after you’ve determined that the money refund mentioned on the check you got from your insurance provider is acceptable to you.

Some insurance payments are made payable to a single individual and may get paid right away. In many cases, an insurance check will also include a third person’s name (for example, an extra policyholder) or an organization (e.g., your mortgage lender or bank).

In this situation, to pay your check at a bank or credit union, you’ll need signatures from each individual/party.

There may also be provisions in your liability coverage contract or state legislation that restrict you from obtaining the payments right away. Suppose you have a mortgage, for example.

In that case, your mortgage lender will have to endorse the check since they technically still own the house where you’re getting insurance coverage, which may cause your expected payback timetable to get delayed.

Some lenders even stipulate that the benefits get utilized to repair the actual damage to your house. If you don’t want to pay for repairs out of pocket, you’ll need to compile cost estimates and quotations from contractors ahead of time.

You are not compelled to utilize your insurance benefits to repair the property if you own it entirely, whether a house or a vehicle, and also may cash the check and use it for something else.

You may need to jump through some additional hoops to cash your check. This depends on the kind of check, your insurer, and the rules in your state. Additionally, if the check is for something you don’t own entirely, the money may be limited to merely compensating damages.

How to Cash a Check from Insurance Company without the help of a Mortgage Company

How to Cash a Check from Insurance Company without the help of a Mortgage Company

If you get a check from your insurance company and want to cash it without going via a mortgage company, the first thing you must do is call your insurance company.

For further information, contact their “loss draft department.” Inquire about the loss draft department’s working processes while speaking with someone from your insurer’s loss draft department. This is true since there are various ways to obtain the check endorsed and processed without going via a mortgage firm.

After your phone the loss draft department and explain the situation, they will usually send you an email with the conditions that must be satisfied before the check can get redeemed.

For some insurance providers, the procedure will be straightforward. The firm approves the payment when you bring in a copy of your loss and your contractor’s contract for the job. This is a perfect scenario. In rare cases, you may want a final invoice from the contractor.

They may even ask the contractor for a conditional lien release in some instances. Some insurance companies may even require the homeowner or the contractor to sign an affidavit indicating that the damage will get rectified.

On the other hand, other insurance companies may desire to inspect the project and send a team to do so as part of their procedure. They may come out and check the job in the middle if it is enormous.

Some insurance providers may even hold the funds in escrow and release them in stages or after the project is completed. In the end, it’s up to your insurance provider and what they want to achieve.

Frequently Asked Questions

Can I cash an insurance check without Mortgage Company?

Yes. The steps on cash insurance checks without the mortgage company above will aid you immensely on this.

How long does a check from an insurance company last?

The expiry date on insurance checks are frequently written near the note and says “Void after 20 days” or another period. The check may get cashed if the expiry date hasn’t passed.

Where can I cash a check from an insurance company?

You may go to your local bank or credit union to get your refund after you’ve reached the proper endorsements and signed the check personally. Using your bank can save you money and give you more financial security, but cashing a check in a credit union will cost you a portion of your profits but will enable you to have dollars in your hands right away.

Is it possible for me to sign an insurance check as an endorser?

Yes. Insurance checks are occasionally made payable to a different person or organization than those issued to you. Turn the check over and acknowledge it on the reverse side, above the line on the back. You should see a spot where you may write your name and endorse the check. Take the check to the other payee after that.

Is it possible for a bank to keep an insurance check?

While most lenders can keep insurance claim checks throughout the repair or restoration process, other lenders may choose to release monies in installments or all at once. The homeowner may face difficulty even if a lender retains the insurance claim cash or delivers them in spurts.

What is the best way to pay a hefty insurance check?

A substantial insurance check may get cashed in the following ways:

  • Go to a bank in your area.
  • Take your check to a bank or credit union where a friend or family member works.
  • Go to the bank that granted the check
  • Go to any local credit union to cash the check.
  • Also, go to a grocery store or retail store to cash the check.


In conclusion, insurance comes with diverse perks. And if you need to learn how to cash insurance check without Mortgage Company, the above highlight will be a sure guide.


Adam Grabois is an expert in all aspects of Insurance and Property with 20 years of experience. He is a licensed broker of all lines including property, casualty, life, and health. As a licensed adjuster, he is well-versed in all aspects of insurance, and he owns All Needs Insurance agency in Florida.

He attended Tufts University where he earned his undergraduate degree, followed by a Master's degree from Columbia University.

Adam shares his breadth of experience by helping many businesses and individuals manage risk and protect themselves financially. He now shares this with the audience of the "Pro Insurance Info" website.

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