Mortgage Insurance Loss Process

Have you ever experienced damage to your home from a storm? Such as wind or hail destruction? How about your sump pump failing, resulting in standing water in your basement? If you have ever fallen victim to these situations, you know how stressful it can get, especially the insurance claim process. In the occurrence of such an event, you may be getting loss claim paperwork and payments from your home insurance provider. Plus, since CorTrust Bank services all of our home loans locally, we will also be a part of the process. As your mortgage servicer, we are named on the insurance proceeds check. The interest we hold in the property entitles us to oversee the repairs and disburse the insurance funds accordingly.

Here is how the process looks:

Claim Classification

We will classify your insurance loss as “monitored,” or “endorsed,” based on the type of your loan, the amount of the loss, payment history, and your loan to value of the property. In addition, our team is happy to discuss the details of your loss and the classification of your claim. Prior to making any decision, we will need the full copy of your insurance loss claim paperwork you received from your home insurance provider. 

Monitored Insurance Losses

Based on your claim classification and after receiving all of your required paperwork, we may be required to classify your loss as a monitored status. We monitor losses that do not meet endorsed requirements to verify the completion of the repairs. In this situation, the insurance loss proceeds check will not be signed over to the homeowner, but rather deposited into an escrow account and held at the bank. Funds are issued as the repairs are completed, and inspections may be needed to verify completion of the repairs. Please contact our mortgage servicing department to discuss specific requirements that would pertain to your claim.

Endorsed Insurance Losses

We may endorse the claim check if your loss meets non-monitored requirements and a good payment history has been maintained. Prior to making any decision, we will need to review all necessary documents. As part of this process, we will endorse the loss claim proceeds check; if you certify, in writing, you intend to fix all damaged items. In addition, a post repair inspection is typically required, which is at your cost. Repairs are expected to be completed within 12 months of the loss date. If you expect repairs to take longer, please contact us to discuss. 

Questions? Our team of mortgage servicing specialists are available toll free at 800-643-4525, Monday-Friday 8 am-5 pm cst. Our mailing address is: CorTrust Bank Mortgage Servicing, PO Box 949, Sioux Falls, SD 57101