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Flood insurance claim and how do funds get released from my bank if I’m doing my work myself?

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I just got my flood claim final proof of loss. Its in the tens of thousands. We have done a lot of work ourselves and it hasn’t cost us nearly that much money. Our only remaining major expense is the $ 10,000 furnace to be installed and the new electrical panel. We’ve already replaced flooring and we opted to not open up the walls and remove baseboards, but used industrial heaters and dehumidifiers to dry out the walls. We also applied our own mildewcide.

Basically my question is that the check will be cut and made out to me and my bank that also holds my mortgage. The bank will put the money in my savings account but it will only be available to me as I submit reciepts for work completed. I know that I will not use up all of the funds that are to be distributed to me and I will still be able to restore the house to pre-flood condition. What will happen to the remaining funds that are not spent on repairs? What about the work I’ve done myself, my labor and time?

Asked: Dianne S

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  1. mbrcatz on May 19, 2011 reply

    Well, you NEED to use up all the funds available. I think what you’re NOT factoring in here, is YOUR labor costs. When you do the labor yourself, you’re entitled to be paid for your time out of that insurance claim.

    So keep track of the hours you spend, working the job. Also, talk to the bank, to make sure they’ll let YOU complete the labor, and accept the work as it is done by you. You’ll submit your labor charges at the same time as you submit your materials receipts, and probably photos to prove the work is done. You’ll probably want to take photos as you go along, so they can verify the prep work was done correctly, too.

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