Tampa Bay, FL – November 7, 2024 – In the wake of Hurricanes Helene and Milton, Florida homeowners are running into unexpected roadblocks as they seek to access insurance payouts vital for starting repairs. Many are finding that their mortgage lenders are delaying the endorsement of insurance checks, leaving them unable to fund urgent home restoration projects.
Unexpected Challenges in Recovery
When Reza Razavi, a Pass-A-Grille homeowner, received a $20,000 flood insurance check to cover damage to his rental property, he was eager to begin repairs. However, upon presenting the check to his mortgage holder, TD Bank, Razavi was informed he would need to provide extensive documentation before the bank would endorse it. A similar situation occurred with Razavi’s neighbor, who faced delays with a $2,500 advance check meant for initial repairs.
For these homeowners, the delays in accessing funds are not just inconvenient—they’re delaying essential repairs that prevent properties from further damage and ensure they remain livable. “Each delay just adds to the stress and makes recovery that much harder,” Razavi explained.
Bank Requirements Extend Waiting Periods
TD Bank acknowledged the delays, advising that it requires specific paperwork to ensure funds are used for property repairs. “We’re here to assist homeowners with the recovery process, and we encourage them to contact their local branch to confirm all documentation requirements before bringing in an insurance check for endorsement,” said a TD Bank representative.
While the bank cites documentation as essential to prevent misuse, homeowners have voiced frustration over the added hoops they must jump through, particularly when repairs are urgently needed.
Impact on the Restoration Process
With hurricane recovery already complex, the added delays from check endorsements create even more challenges for residents. The waiting period means damaged properties remain unrepaired, leaving some homes at risk of worsening structural issues and additional financial strain. Homeowners, who are already covering temporary housing costs, are finding these delays especially difficult to manage.
“When you’ve lost so much to the storm, all you want to do is get back to normal,” said Sarah Lopez, a Tampa homeowner waiting for insurance funds. “Every day that we wait to access our money is another day we’re in limbo.”
Advice for Affected Homeowners
Homeowners dealing with similar situations are encouraged to reach out directly to their mortgage lenders to ensure they have all necessary paperwork ready before requesting check endorsements. Additionally, working with an insurance agent or legal advisor can provide valuable guidance on navigating these requirements and expediting access to funds.
Path to Smoother Recovery
As Florida communities work toward recovery, the need for seamless access to insurance funds remains critical. Streamlined processes between insurers, banks, and property owners would help reduce delays in future storm recoveries, offering quicker relief to residents eager to rebuild.
Contact Information:
For questions or assistance, Florida residents may contact:
Florida Department of Financial Services
Phone: (850) 413-3089
Website: www.myfloridacfo.com
Source: https://www.abcactionnews.com/news/local-news/bank-refuses-to-let-some-fl-homeowners-cash-hurricane-insurance-checks
November 18, 2024
