To cash an insurance check with a lienholder- you need to send the check to the lienholder with a copy of the repair cost and tell them to sign the check to you so that you can cash it.
Cashing an insurance check can be quite complicated, especially when there is a lienholder.
However, don’t worry. Because in this post, I will provide an in-depth guide on how to cash insurance check with lienholder. Moreover, I’ll also answer all the related queries. So, stick here.
Let’s start by finding out the obvious.
Find out How do I cash an insurance Cheque
Do Insurance Companies Report To Lien Holders?
Yes, insurance companies report to lienholders.
As a lienholder legally has an interest in the car or house so, the insurance companies have to report to lien holders. When you buy a car on a loan or take a mortgage for a house, you are not the owner of the car or house. But your lender is. If you can’t pay the loan installments then your lender can sell the car or house to get their money back.
That is why insurance companies include lienholders in the policy. So, when you file for an insurance claim your insurance company must report to the lienholder too.
Can You Cash Out An Insurance Check?
You can cash out an insurance check only if the check is solely in your name. On the other hand, if the check involves multiple parties then you have to convince the other parties to write the check over to your name. Only then you can cash the check by yourself.
Otherwise, you will need other parties present at the bank or credit union to cash the check.
Can I Cash A Check Made Out To Me And My Finance Company?
No, you can not cash a check made out to you and the finance company. In case the finance company signs the check over to you only then you can cash the check.
When you make an insurance claim, your insurance company investigates the claim. If they find your claim to be legit they offer the reimbursement via check. However, when you have a lienholder then the insurance company also adds the lienholder’s name on the check.
An insurance company can add the lienholder name using either “Or” or “And”. In case they use your name “Or” your finance company in the check then you can cash out the check like any regular check. But if they use your name “And” your finance company then you can not cash the check on your own.
So, How do I deposit a check made out to me and my mortgage company?
How To Cash Insurance Check With Lienholder
To cash an insurance check with a lienholder first check out the following
- Find out whether the check is written using “Or” or “And”.
- If the check is written using “Or” you can cash by yourself at any bank, grocery shop, or check cashing store.
In case the check s written using “And” then you can’t directly cash the check. You have to do the following
- Send the check to the lienholder along with the repair cost.
- The lienholder will check the repair cost. They can also send an expert to find the actual repair cost.
- After that, the lienholder will cash the check and send you two checks. One for the repair cost and another to pay your insurance deductible.
- Any remaining balance will be added to pay your loan installment.
You can also request your lienholder to sign the check over to you. If their policy allows it then they can sign the check over to you. In case they sign the check over to you and the check amount is large, then you might need a representative of your lienholder to cash it at the bank.
Moreover, you can also request your insurance company to write the check in the repair company’s name.
How To Cash Insurance Check Without Bank Endorsement
You can not cash an insurance check without bank endorsement if the bank is also a lienholder.
To cash an insurance check involving multiple parties, you must need an insurance claim check endorsement by the bank or financial institution. Otherwise, attempting to cash the check might cause you legal trouble.
So, if you have a multi-party insurance claim check then you must endorse the check by the bank before cashing it.
By now, we have found out how to cash insurance check with lienholder. Now let’s have a look at some of the related queries.
FAQs
Here are some of the frequently asked questions related to this topic.
How To Cash Homeowners Insurance Check With Lienholder
You can not cash homeowners insurance checks by yourself or with the lienholder. You need to send the check along with repair costs to the lien holder. Your lienholder will cash the check and pay for the repair cost. If there is any remaining amount then it will be used to pay your loan installments.
How Do Insurance Companies Pay Out Claims?
After insurance claim investigations, insurance companies send an adjuster to determine the cost of damage. Then when you agree with the adjuster the insurance company will send you a check to pay for your claim.
Can I Pay Insurance With A Check?
Yes, you can pay insurance with a check. Almost all major insurance companies accept insurance payments via check. So, if you want to pay your insurance premium via check then talk with your insurance company.
In Summary
Receiving an insurance check can be relieving. However, if the check involves a lienholder and your lienholder’s name is written using “And” then the situation can become quite complicated. So, if you are having trouble understanding the check then please consult with an expert.
