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Contractor payment from homeowner's insurance

We're a GC in California, completed emergency mitigation services for a homeowner, submitted AOB and direction to pay to insurance company, they issued two party check to homeowner and their mortgage company. What do we need to get paid directly? Adjuster is claiming the mortgage company has to be included based on the dollar amount, is that valid?

2 replies

Apr 24, 2020

If an owner and mortgage company have to sign off on the check before it can be released, then it's up to them to decide when they'll release payment. And, if they're moving too slowly, or if they're refusing to make payment - then tools like invoice reminders, demand letters, and even Notices of Intent to Lien can help to speed up payment. But, before raising a dispute, it might be useful to contact the owner and mortgage company to ask for the check or at least for the next steps to get the check (which may include submitting a lien waiver). As for whether it's normal for the mortgage company to be included on the check - that doesn't sound out of the question. And, as long as the owner hasn't fallen behind on their mortgage payments, it's usually not a huge ordeal to have the mortgage company pass the check along. This article does a good job of explaining why mortgage companies are often included on insurance checks: Why Is My Insurance Claim Check Made Out to Me and My Mortgage Company? Finally, keep in mind that California's lien deadline won't wait for a mortgage company or an owner. So, if the lien deadline is closing in, then pursuing a mechanics lien might be necessary to secure payment. And, as the deadline draws closer, a Notice of Intent to Lien can work to add some urgency to the situation.

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