How to Handle a Hurricane Insurance Claim When You Have a Mortgage
When a hurricane damages or destroys your home, the recovery process can feel overwhelming. If you have a mortgage, the situation often becomes more complicated. That’s because both you and your mortgage company have a financial interest in the property.
Understanding how hurricane claims work for mortgage holders can help you avoid delays and protect your rights. As a trusted New Orleans hurricane attorney, Cueria Law Injury Lawyers helps homeowners navigate this process and pursue the compensation they need to rebuild.
Understanding Hurricane Claims When You Have a Mortgage
Why Your Mortgage Company Gets Involved
When you finance a home, your mortgage company requires insurance to protect its investment. Because of that, insurance companies usually issue hurricane claim payments jointly to you and your lender.
Before you can use those funds, your mortgage company must approve and release them. This extra step often slows the process, especially after major storms.
The Mortgage Company’s Role
Your mortgage company wants to ensure that you use the insurance proceeds to repair or rebuild the home. In other words, the lender focuses on protecting the property’s value—not on your personal hardship.
Because of this, lenders often require:
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Documentation of damage
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Repair estimates
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Inspections before releasing funds
Why Working With a Hurricane Attorney Matters
Handling a hurricane claim while coordinating with a mortgage company can quickly become stressful. That’s where a hurricane attorney can help.
An experienced attorney can:
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Communicate with your insurance company
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Address delays or underpayment issues
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Coordinate with your mortgage company
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Protect your legal rights throughout the process
Most importantly, your attorney advocates for you—not the insurance company or the lender.
Step-by-Step Guide to Handling a Hurricane Claim With a Mortgage
Step 1: Notify Your Insurance Company and Mortgage Company
First, contact your insurance company as soon as possible to report the damage. At the same time, notify your mortgage company. Many lenders have specific procedures, so early communication helps prevent delays.
Step 2: Document All Damage
Next, take photos and videos of all visible damage once it’s safe. Be thorough. Document:
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Structural damage
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Interior damage
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Personal property losses
This evidence plays a critical role in supporting your claim.
Step 3: Review Your Insurance Policy
Then, carefully review your policy. Look for:
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Coverage limits
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Deductibles
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Exclusions
Understanding your coverage helps you identify what the insurer should pay—and where disputes may arise.
Step 4: Obtain Repair or Rebuild Estimates
After that, request multiple estimates from licensed contractors. These estimates support your claim and help your mortgage company determine how to release funds.
Step 5: Work With Your Hurricane Attorney
At this stage, your hurricane attorney can step in fully. Your attorney will:
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Review estimates
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Negotiate with the insurer
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Address lender requirements
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Push back against unfair delays
This guidance often makes the process smoother and faster.
Step 6: Submit Your Hurricane Claim
Submit your claim along with:
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Damage documentation
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Contractor estimates
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Any required forms
Be prepared for negotiation. Insurance companies often undervalue hurricane claims initially.
Step 7: Coordinate the Release of Funds
Once the insurer issues payment, work with your mortgage company to release the funds. Lenders may require:
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Progress inspections
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Signed contractor agreements
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Draw schedules
Your attorney can help ensure these requirements stay reasonable.
Step 8: Complete Repairs or Rebuild
After the lender releases funds, begin repairs or rebuilding. Keep detailed records and update your mortgage company as required.
Step 9: Close the Hurricane Claim
Finally, once repairs finish, work with your insurance company and attorney to close the claim properly.
Step 10: Update Insurance and Mortgage Records
After rebuilding, update your insurance coverage and mortgage records. This step ensures accurate coverage moving forward.
Additional Issues to Watch For
Interest on Insurance Proceeds
In some cases, mortgage companies must pay interest on insurance funds they hold. This depends on your mortgage agreement and state law. A hurricane attorney can review your documents and advise you.
Mortgage Company Policies Vary
Each lender follows different rules. Some move quickly, while others delay. Staying informed—and represented—can prevent unnecessary setbacks.
Insurance Shortfalls
Sometimes, insurance proceeds fall short of repair costs. When that happens, you may need to:
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Negotiate with your lender
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Explore additional financing
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Challenge the insurance payout
Legal guidance becomes especially important in these situations.
Final Thoughts
Handling a hurricane claim when you have a mortgage requires patience, organization, and advocacy. Insurance companies and mortgage lenders often focus on their own interests—not yours.
By working with an experienced hurricane attorney and following the steps above, you can reduce stress and move forward with confidence. Cueria Law Injury Lawyers stands ready to help you protect your home, your rights, and your future after a hurricane.
