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Question DetailsAsked on 1/18/2018

Insurance check in roofer's name and mine. Who deposits check prior to doing any work?

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1 Answer


Here is one previous question with answer about this issue FYI:

Basically, first check any documentation from the insurer on the claim payment - many require that the payment not be tendered to the contractor until the job is complete and passes inspection is a lump-sum payment. If a split payment (amortized value first, then replacement cost portion) they typically have criteria on when to tender the first part, the second after it is complete and passes inspection.

Also check your contract on when payment is due - you do not want to pay him before the contract calls for it, and certainly not all or a major portion before the work is done.

For the actual "who deposits" - since he is the one ultimately getting it, typically the homeowner makes it payable to the contractor's company name, he endorses it, and deposits it. MUCH safer to do like in the question, not endorsing it until at his bank with it, and he turns over a singed and dated "paid" invoice or receipt (on his company form) to you. This "at bank" endorsement and verification with the bank it is going into a company account rather than his individual account provides at least a bit of protection to you he is not running off with the money on you. Good idea to have the bank give you a copy of the front and back of the check at time of deposit (after endorsements) too, as proof of payment to him - he would also probably like one for his files if a good businessman, not only for payment documentation but it also shows your signature on it showing you intended to pay him the money (hence presumably approved of the work to at least that progress paint).

There may also be something in your mortgage about requiring they be involved in any insurance damage payments to the contractor, so they are sure they are not losing out on equity value on insured damage claims perhaps not being done right or at all but being paid for by the insurance company, which can happen with cash payments.

Yuo said "prior to doing any work" - that is a hitch - why would you be paying him before the work is started, at leat any significant amount of $ ? Back to the first and second paragraphs on that issue.

Answered 2 years ago by LCD

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