Sometimes when you have damage on a car or your home, you need to use all the money your receive to repair the damage. At other times, you might prefer pocketing the money and leaving the hail or water damage alone. Before you try this maneuver, you need to find out if keeping the cash is an option for you.
If you do not own your car outright, you can forget about taking the cash settlement and running with it. The bank or finance company will require that you repair your vehicle, and the insurance company may even make the check out to both you and your banker. If you own your car, you may be able to take the cash, depending on where you live and the terms of your policy. In many instances, your insurance company will send the check directly to the repair shop, meaning you will have to be happy with having your car restored to excellent condition. Of course, you need to have any serious damage repaired to maintain your car's safety and value, but if you receive a check for a dent or hail dings on your older vehicle, keeping the money is not a bad idea.
Home claims are similar to car claims. If you have a mortgage, you won't be given a choice about repairing your home. Your loan company has you carry home insurance for a reason. They will have to approve repairs, and they will require receipts to show how much was paid to the contractor. Your insurance company may want receipts as well. Your lender will be required to send you the difference between the insurance settlement and the repair cost if there is any. If you own your home outright, it's possible that you could be in charge of your own repairs, depending on the terms of your specific policy. If you do get a direct check, be sure that it is enough to cover all repairs before you accept it. Remember, once you sign off of the settlement, you have no further recourse on that particular claim. So, if your contractor raises his price, you'll have to make up the difference yourself.
The best time to find out about the settlement process is before you have a claim on your car or home. Talk to your insurance agent about who gets the check in case of a car accident or storm damage. If you want the money to come to you directly, you may have to shop around for a different policy. For more information, contact a company like D A Insurance Brokers.