How is my mortgage lender affected by any insurance claims as a result of natural disasters?

Typically, any settlement checks that you receive from your insurance company will be made payable to both you and your mortgage lender. Because the mortgage lender has a loan that is secured by your property, the mortgage lender wants to make sure that all necessary repairs are made in order to protect the property. Your mortgage lender may cash the insurance company check and pay the repair or rebuilding expenses as they are incurred.  

The information on this page is meant to provide a general overview of the law. The laws in your state and/or city may deviate significantly from those described here. If you have specific questions related to your situation you should speak with a local attorney.

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