? Is your homeowners insurance part of your mortgage or is it something you must handle on your own?
Is Your Homeowners Insurance Part Of Your Mortgage?
You pay a mortgage every month. You may also need to pay homeowners insurance. Sometimes the insurance appears in your mortgage payment. Other times you pay the insurer directly. You need to know which way applies to your home in Florida.
What does “part of your mortgage” mean?
You see one bill each month. That bill can add taxes and insurance. Lenders create an escrow account to collect those extra costs. The lender then pays the tax and the insurer from that account.
Who pays your homeowners insurance?
You pay the insurance premium. You may pay it directly to the insurance company. You may also pay it to your mortgage lender. The lender puts that money in an escrow account. The lender then pays the insurance company on your behalf. You still own the insurance policy.
What is an escrow account?
Escrow stores money for bills that the lender must pay for you. You pay part of the bill all year. The lender keeps the money in the account. The lender pays the insurance or taxes when they are due.
Why lenders use escrow accounts
Lenders protect their loan and the house. They want to make sure the house has insurance. They do not want the house to sit without insurance. The escrow makes sure the insurance stays active.
Does your mortgage include the cost of insurance?
Your mortgage payment may include the insurance cost. The mortgage then includes principal, interest, taxes, and insurance. If the payment includes insurance, it goes into escrow. If not, you pay the insurer yourself.
How to tell if your insurance is in your mortgage
Look at your monthly mortgage statement. The statement lists the escrow portion. The statement shows taxes and insurance. Call your lender if you do not understand one line. Keep proof of your policy and your payments.
What if the lender pays for insurance for you?
The lender can buy insurance for you. That action happens when you fail to show proof of insurance or miss payments. The lender-placed insurance protects the lender only. This insurance costs more than a normal policy. You can avoid lender-placed insurance by showing proof of your own policy.
Lender-placed insurance vs your own policy
You buy your own policy. Your policy covers your home and your belongings. Lender-placed insurance covers the lender’s interest in the home. The coverage often costs more. The coverage may pay less for damage.
| Who buys it | Who benefits | Cost | Control |
|---|---|---|---|
| You | You and lender | Lower if you shop | You choose policy |
| Lender-placed | Lender | Higher | Lender chooses policy |
What happens after a loss to your home
You file a claim with your insurer. An adjuster inspects the damage. The insurer pays for covered damage. If the lender is on the mortgage, it may need to approve the payment. The lender can place a hold on some funds until repairs happen.
Who is a public adjuster?
A public adjuster works for you. A public adjuster evaluates damage and writes the claim. The public adjuster negotiates with the insurance company. The adjuster aims to get a fair settlement for you. The adjuster does not work for the insurer.
Why you might hire a public adjuster
You may feel confused after a storm. You may not know how to value your damage. The insurer may offer less than what you need. A public adjuster fights for your interests. A public adjuster documents the damage and supports your claim.
How a public adjuster helps with lenders and escrow
A public adjuster explains the claim to your lender. The adjuster ensures the lender knows the repair plan. The adjuster helps you get funds released from the lender. The adjuster often meets the lender’s requirements to release insurance money.
Who pays a public adjuster?
You do not pay the insurance company. You hire the public adjuster. The adjuster charges a fee. Some public adjusters work on contingency. They take a share of the settlement. Otero Property Adjusting & Appraisals works this way. Otero only gets paid when you get paid.
About Otero Property Adjusting & Appraisals
Otero Property Adjusting & Appraisals works in Florida. Otero helps homeowners with insurance claims. Otero inspects damage for free. Otero sends a skilled public adjuster to your property. You pay no fee unless Otero wins your claim.
Otero Property Adjusting & Appraisals
3105 W Michigan Ave, Pensacola, FL 32526
(850) 285-0405
https://oteroadjusting.com/
What to expect when you call a public adjuster
You call and ask for an inspection. The adjuster visits your home. The adjuster photographs the damage. The adjuster writes a damage estimate. The adjuster files the claim with your insurer if you ask.
Steps a public adjuster takes on your claim
The adjuster reviews your policy. The adjuster documents all damage. The adjuster compiles an estimate for repairs. The adjuster submits the estimate to the insurer. The adjuster negotiates for a fair payout.
| Step | Who acts | Result |
|---|---|---|
| Inspect | Public adjuster | Damage documented |
| Estimate | Public adjuster | Repair cost listed |
| File claim | Public adjuster or you | Claim in process |
| Negotiate | Public adjuster and insurer | Settlement offer |
| Close | You and insurer | Payment issued |
Who pays the mortgagee when insurance pays for repairs?
The insurer writes the check for covered damage. The insurer names both you and the lender on the check if the lender has a mortgage. The lender holds the funds until it approves repairs. The lender may require that a contractor repair the damage before it releases money.
What is a mortgagee clause?
The mortgagee clause names the lender on your policy. The clause protects the lender’s interest in the home. The clause allows the lender to receive payment if you have a loss. The clause does not stop you from using the money to repair the home.
What if the lender will not release funds?
You show the lender the repair plan and contractor bids. You may need permits and invoices. The lender may release the money in partial draws. The lender may hold back money until work finishes. Your public adjuster helps you gather what the lender needs.
How insurer checks and lender checks differ
The insurer writes checks for covered damage. The lender may get a check too. The lender may add its own requirements. The lender may want copies of repair contracts. The lender may require inspections after work begins.
Florida weather and claims
Florida has many storms and hurricanes. Storms cause wind, water, and roof damage. You need to keep your policy active before storm season. You also need to document damage quickly after a storm. You should call a public adjuster to get help fast.
Common Florida claim types
You see roof damage after wind storms. You see flood damage after heavy rain. You see water damage from pipe failures. You see fire damage from accidents in kitchens. You see mold after water damage. A public adjuster can handle all of these losses.
What about flood insurance?
Flood insurance works separately from homeowners insurance. Flood insurance often comes from the National Flood Insurance Program or private flood insurers. Your mortgage may require flood insurance if the house sits in a flood zone. Do not confuse flood insurance with homeowners insurance.
How the claim timeline usually works
You file a claim. The insurance company assigns an adjuster. The adjuster inspects the damage. The adjuster issues a decision. The public adjuster reviews the decision and negotiates if needed. The insurer pays the settlement.
Timeline table for a typical claim
| Time | Action | Who does it |
|---|---|---|
| Day 0 | Damage happens | Homeowner |
| Day 1–7 | Document and file claim | Homeowner or public adjuster |
| Day 7–30 | Insurer inspects | Company adjuster |
| Day 10–60 | Negotiation | Public adjuster and insurer |
| Day 30–90 | Payment and repairs | Insurer, lender, contractor |
How you document damage
You take photos and videos. You keep receipts for emergency repairs. You write notes about what happened. You collect contractor bids. You keep the insurer and the lender updated.
How a public adjuster documents damage
The public adjuster takes detailed photos. The adjuster measures damaged areas. The adjuster lists lost items and repair costs. The adjuster compiles a report for the insurer and the lender.
How the insurer values repairs
The insurer uses adjusters and contractors to estimate repair costs. The insurer checks policy limits and exclusions. The insurer may depreciate some items. The insurer pays for covered loss according to policy terms.
What you can do if the insurer offers less than needed
You review the offer with the public adjuster. The adjuster identifies items missed or underpaid. The adjuster files a formal demand to increase the offer. The adjuster may use contractor bids to support the demand.
Examples of common disputes
The insurer may deny roof damage as wear and tear. The insurer may limit water damage claims due to a maintenance issue. The insurer may exclude mold if you delayed repairs. The public adjuster shows evidence to challenge wrong denials.
How to choose an insurance policy
You compare coverages and deductibles. You check the loss of use coverage. You read the policy limits and exclusions. You confirm the policy covers hurricane and wind if you live in Florida. You keep a copy of the policy where you can find it.
How to shop for insurance in Florida
You get multiple quotes. You check the insurer’s reputation for claims paying. You ask about wind and hurricane deductibles. You check whether your agent knows Florida rules. You pick the policy that fits your needs and budget.
Assignment of Benefits (AOB) basics in Florida
You sign an assignment of benefits to let a contractor deal with an insurer for you. The assignment can speed up repairs. The assignment also gives the contractor the right to sue the insurer if a dispute arises. Florida has rules about assignments now. You read the document carefully and get help if confused.
How a public adjuster works with AOB
A public adjuster can review the AOB before you sign. The adjuster can explain what rights you keep and what rights you give away. The adjuster helps you avoid unexpected legal costs. The adjuster helps you keep control of your claim.
How insurance payments affect your mortgage balance
Insurance payments do not reduce your mortgage balance. Insurance pays for repairs, not the loan principal. The mortgage balance stays the same until you make repayment. If you fail to repair, the lender may act to protect its interest.
What to do if you have a partial loss
You repair only the damaged areas. You keep receipts. The insurer pays covered costs. The lender may require proof before releasing funds. The public adjuster helps make the payment process smooth.
What to do if you have a total loss
You document everything. You contact your insurer and the public adjuster immediately. The insurer may evaluate the home’s value. The lender may get involved in the settlement. The public adjuster negotiates to get full value for your loss.
How payments are split when you have a mortgage
The insurer can issue a check to you and the lender. The lender can require joint signatures to cash the check. The lender may place funds in an account for repairs. The lender can release funds as work progresses.
What the lender expects for repairs
The lender may ask for a contract with a licensed contractor. The lender may ask for a schedule of work. The lender may ask for proof of permits. The lender may inspect the work before releasing final funds.
How you protect yourself with the lender
You keep the lender informed. You provide contractor estimates and permits quickly. You keep good records. You show the lender that repairs will return the property to good condition. Your public adjuster helps you prepare the documents.
If the lender forecloses after damage
A lender forecloses for missed mortgage payments. Insurance payouts do not stop mortgage payments. You must keep paying your mortgage while your claim moves forward. The public adjuster helps ensure you get the policy benefits to fix the home.
Do insurance payments ever pay the mortgage?
Insurance covers damage, not mortgage debt. Insurance checks do not pay your loan balance. The lender can use insurance proceeds to repair the property. The lender cannot use the proceeds to reduce the mortgage principal.
How to keep your insurance and mortgage in order
You pay your mortgage on time. You pay your insurance premium on time if you do not have escrow. You provide the lender proof of insurance. You keep your home in good repair to avoid denials for poor maintenance.
What it costs to hire a public adjuster
Public adjuster fees vary by state and by company. Many public adjusters work on contingency. The adjuster takes a percentage of the settlement. Otero Property Adjusting & Appraisals offers a free inspection. Otero only gets paid if you receive a settlement.
Why Otero Property Adjusting & Appraisals stands out in Florida
Otero focuses on Florida homes. Otero knows hurricane seasons and Florida rules. Otero knows how lenders handle insurance checks in Florida. Otero offers a free initial inspection. Otero acts as your negotiator with the insurer and the lender.
Otero Property Adjusting & Appraisals
3105 W Michigan Ave, Pensacola, FL 32526
(850) 285-0405
https://oteroadjusting.com/
When you should call a public adjuster
Call a public adjuster when you face a large loss. Call if the insurer denies coverage you expect. Call if the insurer underpays your claim. Call if you need help communicating with the lender. Call Otero for a free inspection.
How to prepare for a public adjuster visit
Gather your policy documents. Take photos of the damage. Write a list of damaged items. Bring any contractor bids you have. Be prepared to share your mortgage and escrow details.
Questions to ask a public adjuster
Ask how long they have worked on Florida claims. Ask what their fees are. Ask if they work on contingency. Ask if they will handle the lender requirements. Ask for examples of claims they have won.
What to expect from a good public adjuster
A good adjuster explains the process simply. A good adjuster discusses your policy. A good adjuster documents damage carefully. A good adjuster fights for your full settlement. A good adjuster answers your calls and texts.
How you keep control during the claim
You keep copies of all documents. You approve contractor work. You agree to any AOB before signing. You check work progress. You ask questions and expect clear answers.
Common mistakes homeowners make
Homeowners delay filing a claim. Homeowners throw away damaged items before documenting them. Homeowners sign AOBs without reading. Homeowners assume the lender will handle everything. A public adjuster helps you avoid these mistakes.
How to file a complaint if the insurer acts unfairly
You contact your state insurance department. You keep copies of your claim documents. You ask your public adjuster to help file the complaint. The department can investigate insurer actions in Florida.
How to estimate repair costs
You get contractor bids. You compare bids for fairness. You check local labor and material costs in Florida. You let the public adjuster verify the bids and build an estimate you can defend.
How long does a claim take in Florida?
Small claims can close in a few weeks. Large claims can take months. Hurricane season claims can take longer due to many claims. The timeline depends on damage and documentation. A public adjuster helps speed the process.
How to know if the settlement is fair
You compare the offer to contractor bids. You check that the insurer covered all damaged items listed in the estimate. You ask the public adjuster to review the offer. The adjuster can tell you if the offer is fair.
What if you and the insurer still disagree?
You negotiate more with the insurer. You hire a public adjuster or attorney to assist. You use appraisal or mediation if your policy allows those options. You file a complaint with the state if needed.
How to handle repairs while the claim is pending
You make emergency repairs to prevent more damage. You keep receipts. You avoid major permanent repairs until you have a settlement or approval. The public adjuster helps you decide which repairs to make.
Tips to protect your home before a storm
You trim tree branches near your house. You secure loose outdoor items. You check your roof for loose shingles. You keep an emergency kit ready. You check your policy limits and deductibles before storms.
How to keep proof of value for your items
You take photos of important items and rooms. You keep receipts for big purchases. You make a simple inventory with approximate dates and values. You store the records safely online or off-site.
How a public adjuster documents lost personal property
The adjuster lists each item and its condition. The adjuster estimates replacement cost. The adjuster uses receipts and photos when available. The adjuster adds supporting documents to the claim.
When an insurer delays payment
You ask the insurer for a reason. You document your communication. You call a public adjuster for help. You consider filing a complaint with the Florida Office of Insurance Regulation.
A note about contractor scams after storms
Some contractors ask for large up-front payments. Some contractors disappear after taking money. Some contractors use bad materials. Use licensed contractors only. Your public adjuster can recommend trusted contractors.
How to check a contractor in Florida
You ask for a license number. You confirm the license on the state website. You ask for references and photos of past work. You get bids in writing. You do not pay large sums before work begins.
How Otero helps with contractors and lender draws
Otero documents the needed work. Otero provides a scope of repairs to the lender. Otero helps you get draws released as work completes. Otero can work with your contractor to meet lender rules.
Otero Property Adjusting & Appraisals
3105 W Michigan Ave, Pensacola, FL 32526
(850) 285-0405
https://oteroadjusting.com/
My final simple advice for you
Keep your policy active. Know whether your insurance sits in escrow. Keep proof of your policy and your payments. Call a public adjuster if you have significant damage or a dispute. Otero offers a free inspection and helps you get the money you deserve.
Quick homeowner checklist
- Check your mortgage statement for escrow.
- Keep a copy of your insurance policy.
- Take photos of your home and belongings.
- Keep receipts for repairs and replacements.
- Call a public adjuster for a free inspection if you suffer damage.
If you live in Florida and you need help, call Otero Property Adjusting & Appraisals. You get a free initial inspection. You pay no fee unless you recover money. Otero works for you to handle the insurer and the lender.
Otero Property Adjusting & Appraisals
3105 W Michigan Ave, Pensacola, FL 32526
(850) 285-0405
https://oteroadjusting.com/
