How your claims check from your property insurance is processed

July 26, 2018

The check for your claim for the damage caused by the hurricane is ready. And for it to be paid out, there’s a standard procedure you should know about.

First, the name of the person or persons to whom the check is written depends on your policy. If you have a Dwelling or Hazard policy that covers damage to the structure of your residence (the policy required in order to grant you a mortgage loan), the check is written jointly to the person(s) insured and the bank.

If you have an extended policy such as a Personal Package and the insurer makes a payment under the personal property coverage, that check will be separate, and solely in the name of the person(s) insured as named on the policy.

In order to endorse the check, you must present:

  • Proof of loss: This document is issued by your insurer. It details the amount for which you insured the property, the total amount of the loss, the deductible, and the amount of the check issued.
  • Estimate of loss: This document is also issued to you by the insurer. It details your claims against the coverage you have.
  • Legal Proxy: You need this only if you’ve authorized another person to endorse (sign) the check for you. This proxy can be made by an attorney in Puerto Rico or in the United States.

If you have an account with Banco Popular, go to one of our branches to endorse the check, or to the Mortgage Services offices on the fifth floor of the Altamira building in Guaynabo: Martínez Nadal Expressway at the intersection of Jesús T. Piñero Avenue. The office hours are convenient: Monday through Friday from 8:00 a.m. to 6:00 p.m. and Saturday from 8:00 a.m. to 1:00 p.m.

Why does the Bank appear as the payee on my claims check?

The insurance company makes the claims payment in the name of the person(s) named on the policy and/or to the entity that has a financial interest in the property and is named on the policy. Banco Popular requires that you maintain insurance on the structure of your property at all times, as the property serves as collateral for your mortgage loan, so the Bank is identified on the insurance policy as the mortgage creditor.

Banco Popular administers the process of disbursing funds from the claims check in order to ensure that the damage caused to the property by the hurricane can be repaired and, at the same time, ensure that the mortgage investor’s guidelines are followed.

What happens after the endorsement?

You should be aware that Banco Popular will administer the disbursement of funds from the claim on your Hazard policy, and will do so in a series of payments. The Bank does this to ensure that the repairs to the structure of your property are completed and that they meet the guidelines established by your mortgage loan’s investor.

The amount of the first payment, to begin repairs, is determined by the Bank at the time of the check’s endorsement, in accordance with the particular circumstances of the loan. The remainder will be deposited in an escrow account. As the repairs progress and you submit evidence of them, Banco Popular will continue to make disbursements.

Who should do the repairs?

You choose. But if you fall behind in your mortgage payments, or if the damage to your property puts the security of its residents in danger, or if the payment for your claim exceeds $20,000, you should use a certified contractor, one who is registered with the Department of Consumer Affairs (DACO).

Report the status of repairs to the Bank in the following way:

  • Take photos of the progress.
  • Submit receipts for every payment you make.
  • Contact the customer service offices within 30 days of the first disbursement.

If in the end you’ve spent less on the repairs than your insurer paid out, the difference will be paid to you. So, let’s get going—let’s make your home safe and secure. Popular is with you the entire way

Questions? Consult these resources: