If your home has suffered from any kind of serious damage, whether it be the result of flooding, or damage to the roof or exterior during a storm, you’re going to need to take immediate action to have the problem remedied. If you’re currently signed for one of our conventional mortgage loans in Fort Lauderdale, you’ll not only need to inform your insurance provider of the damage that has occurred, but you’ll also need to let us know at the same time. There are a number of different reasons for this, all of which are easy to understand, but vitally important to know.
Serious Damage Needs to be Reported and Remedied as soon as Possible
When you take out a Fort Lauderdale conventional mortgage loan, the loan will be insured with one of America’s largest mortgage companies. Until you have completed payments on your mortgage, the investors on the mortgage will retain a certain level of interest in your property. Damage caused by a natural event can devalue your home, which is why that we (and the investors) need to know about it as soon as you’re able to make contact with us.
As soon as you and your family are safe, and you have ascertained that there is damage to your home, you’ll need to contact your insurance company to begin the claim process. Your insurance provider will send out an adjustor to survey the damage and make an estimate of the value of the damage, after which they will be able to begin the process of providing a check for the damage. You will be a joint recipient of the check, with NHL Lending being the other party included on the claim. This is because we hold the contract with you for your conventional mortgage loans in Fort Lauderdale.
Your insurance company will provide you with a complete report that notes, in detail, all of the damage that has been sustained in the natural event. Once you have your copy of this report and the check for the damage, you can contact us again, and we’ll begin the process of arranging repairs for your home.
Why Are We Involved in the Process?
When you sign for a Fort Lauderdale conventional mortgage loan, you are entering an agreement where we as the lender, are named on your homeowner’s policy. This means that we need to be fully informed and party to any insurance claim that is made on the property. This is important, because we and our insurers have financial risk and interest in your home. It is imperative that the home is maintained to the same condition that it was in when the home was purchased, because this will affect the value of the property. Maintaining of value is important for the unlikely event that mortgage payment delinquencies occur and a foreclosure process begins.
Because NHL Lending will be named as a party on the insurance check, we will have partial say in any of the repairs that will be performed on the home. It will require both of our agreements before any money can be released to contractors that are involved in the repairs. This won’t be a particular inconvenience to you, and in many ways it ensures that the work is performed by an acceptable contractor, for a market friendly price, and that the proposed work is appropriate and performed to a high standard. We will consult with you throughout the claim and repair process, providing you with the same upfront information and support that you have enjoyed while working through the Fort Lauderdale conventional home loan process.
A Quick Checklist for When Disaster Strikes
- Ensure the safety of yourself and your family.
- Make reasonable effort to protect your home from any further damage.
- Contact your insurance company to begin the claim process.
- Contact NHL Lending to report the damage and advise that you have initiated the claim process.
- Ensure that you maintain regular Fort Lauderdale conventional mortgage loan payments during the process.
- Wait for the insurance appraisal and the approval/check, before contacting us again to begin the contractor selection and payment process.
Although you might not want to think about a natural event causing damage to your home, it’s important that you understand the process that should be used in the worst case scenario. When damage occurs, we understand that you will be under a significant amount of stress and may experience financial hardship, so we will be available to discuss all of your options and provide the best advice to work through the situation.
While you’re paying your Fort Lauderdale conventional mortgage loan, you’ll always receive the best service and advice from NHL Lending. Whether you’ve just experienced a fire or natural event that has caused damage, or you simply want more advice on the process, don’t hesitate to pick up the phone and talk to one of our mortgage consultants in the first instance.