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We filed an insurance claim and received a check for hail damage.

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We filed an insurance claim and received a check for hail damage. The check is for 16,000.00. Only 1100.00 was for damage to our home which is financed through Chase. The remainder of the check is for damage to other buildings which we built ourselves a few years after our home was built and were not financed. Chase will not release the check to us until 90% of the repairs are done. The buildings are metal and the damage is not even noticeable and there are no leaks. There is no need for repairs. Can they keep money for something that that never financed?

Attorney 1 :

Hello, and welcome to JustAnswer! I am a licensed attorney and will be happy to assist you.

Attorney 1 :

For clarification, how did Chase come to be in possession of the check from your insurance company?

Customer: They don't have it yet. I still have it but it is made out to my husband and I and Chase of course. I have spoken with them as to how to get it endorsed and they want me to endorse it and send it to them
Customer: Once we endorse it and send it to them they will release 10,000.00 and keep the rest until 90% of the repairs are done. The majority of the damage does not belong to them.
Attorney 1 :

There is no reason to turn your right to payment over to chase. While Chase does have an interest in the repairs to the home, they do not have a right to payment for the other buildings, and do not have the right to impose thr 90% requirement, if doing so would be unreasonable or is not part of your contract with Chase.

You can solve the problem by calling the insurance company and having them cancel the check and three issue two of them, instead. The first check should be for the buildings that have no affiliation with Chase and should be made out to you, only. The second check can be made out to both you and Chase, although this may pose problems If you are notable to pay for 90% of the repairs prior to reimbursement. If you find that to be the case, consider requesting that the joint check also be divided into proportionate shares by the insurance company. That way, you can actually make the repairs for which the check is intended, rather than have it held up, indefinitely.

Attorney 1 :

I hope this information helps. If you need additional information or clarification, please let me know and I will continue to provide assistance. If this response has helped point you in a positive direction, please let me know that, as well.

You may also print and/or return to this page for reference, at any time.

All the best,

-- Attorney 1

Customer: I already asked the insurance co to do that and it took them 2 months to tell us that they could not do that.
Customer: Our agent said he tried to get it reissued but was not able to get it done without Chases permission.
Attorney 1 :

The insurance company can and will split the checks, if necessary. In the alternative, they will be forced to file an interpleader action with the court, which they most certainly will not want to do. An interpleader action means putting the entire amount of insurance proceeds into deposit with the court to avoid potential liability when he threatened to sue them for bad faith. This is the only thing they can absolve them of liability, other than splitting the checks. Therefore, my guess is that when you speak with the manager they will split the checks. I've never seen an insurance company ultimately refused to do so. Hang in there and stick with it, and send written notice to the insurance company of your intent to take legal action against them if they refuse to release your proceeds. There is simply no reasonable excuse for adding Chase is a payee to an insurance claim for buildings in which it has no interest.

Attorney 1 :

Your insurance agent has no authority and likely no clout to handle this matter. The insurance company does not need to pay any attention to the agent. Consider hiring local counsel to write a demand letter and the checks split. That attorney can force and interpleader action, if necessary. A good referral source will be your County Bar Association. There will be no charge for the referral, and no charge for the initial consultation with the attorney to whom you are referred. If the attorney takes your case, there may be no out-of-pocket fees or expenses to pay, either. If you are hitting dead ends everywhere else and don't have unlimited time for this mess, an attorney is a very good option.

Customer: Ok I will keep trying. Thank you
Attorney 1 :

You are most welcome. Best of luck!

Attorney 1 :

If you need any help along the way, please feel free to return to the site and requested my assistance, directly. We do so by beginning new questions with "For Attorney 1." I will be notified of your question and will respond at the first possible opportunity. Your questions always my full attention.

Attorney 1 :


-- Attorney 1

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