# Contractors Name on Deprecation Check



## JWH (Dec 6, 2011)

Ok Guys!! Im tired of getting the shaft by the HO, By not paying the deprecation after we invoice the Insurance company. this has only happend twice. does anyone know how i can get my name on the deprecation check? Thanks!!!


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## MDAVIS21 (Jun 5, 2009)

Do you have an assignment of pay built into your contract? If you do and the insurance company fails to include your name on the check, you have recourse against the insurnace company.


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## dougger222 (Aug 13, 2010)

Haven't been written on an insurance check since 2007. Back then the stormers were thick in town and some adjusters wanted to make sure I got the job!

Mortgage companies write me on the check with the homeowners quite often however. 

Not sure how the whole, "Hey initial or sign this form, I'll take care of the rest" really works. Have heard of contractors doing insurance work basicly require the homeowners to sign over all responsibility to the contractor including were the checks are sent for the loss.

Had a big roof I got approved for a guy who's family sells nails, guns, ladders, etc. The previous two "roofers" got denied and I was able to reverse the claim for full replacement. I was written on the check with the homeowner and I guess he called and complained to the insurance company so they wrote only him on the roof. As soon as that check was in the bank he forgot about me and doing his roof! I no longer buy anything from them...


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## JWH (Dec 6, 2011)

Thanks MDavis, but I'm not sure of what you mean by assignment of pay? Can you send me a example please.


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## Jayteedee (Dec 1, 2009)

Frankly, you can have any and all the froms that you want. The isnurance company is obligated to pay the "named insured". The named insured will always need to be on the check, otherwise, the insurance company is in violation of their own policies. 

Every policy I have ever read has a section where the policy cannot be assigned to another party without the insurance company permission. There are legal cases where insurance companies have paid non-referred contractors directly and then been held responsible for poor work, faulty repairs, violation of contract and such. 

Your goal is basically a two party check.

What you should do is as follows. When you have a contract with a homeowner involving insurance, there should be a section in your contract that states that your company name is authorized to be named added as an additional payee. 

When it comes time for the depreciation, you should be pro-active by providing final invoice along with a copy of your signed document authorizing your company as an additional payee to the insurance carrier. 

You could have some sort of form letter attached and satisfaction certificate that highlights their policyholder has signed and authorized your company to be added as a payee. 

Does the insurance company have to name you? Frankly, the answer is no. But most will. 

Lastly, if you get a two party check issued, it gives you the opportunity to get in front of that customer for referrals, collections, deductibles, or addressing any issues etc. It may be a little more leg work, but, it may be worth it.


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## MDAVIS21 (Jun 5, 2009)

Jayteedee said:


> "Every policy I have ever read has a section where the policy cannot be assigned to another party without the insurance company permission. "


This section of the policy pertains to coverage under the policy and has nothing to do with a contractor being listed on a settlement check.



Jayteedee said:


> What you should do is as follows. When you have a contract with a homeowner involving insurance, there should be a section in your contract that states that your company name is authorized to be named added as an additional payee.


That is what I was referring to.


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## larryb (Jul 22, 2010)

Doesn't matter whether or not the mortgage check has your name on it. It's your properly drawn contract that states what proceeds go where. If the job is $20,000 with $15,000 acv paid up front, the customer still owes you the balance per your contract or you take them to court or lien.


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## JWH (Dec 6, 2011)

I agree Larry, I'm just trying to get it in my contract so they can't cash the check, and keep the money.


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## dougger222 (Aug 13, 2010)

I guess the staff adjusters from an unnamed insurance carrier were breaking policy when they paid me the RCV check upon completion? I'd call them a couple hours prior to finishing the roof and they'd pull up to the site and print me a check on the spot, only made payable to me. Not sure if they got permission from the insured or not. One thing I know is the jobs that this occured on were within days of the 1 year deadline given by the carrier to recover the RCV portion of the claim. I used to get calls from two adjusters from this company a couple weeks before the deadlline asking if I could squeeze one or two jobs in my schedule. Knowing I'd get paid funds the second the job was done it was a no brainer. Anybody working insurance claims know it's rare to get money right away!!!


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## WIPro (Aug 24, 2013)

Hi guys, what a great forum, glad I discovered it while searching online about an issue I'm having. I know this thread is old but any help you could offer would be great.

Back in June I signed a ICA with a HO here in WI after a hail storm. Knew the adjuster well and got darn near everything bought. Tiny old home with 3 tab and aluminum. After supplement and O&P the final scope is right around $22k. Insurance cut acv for around $11,500 with HO and her CU listed. It's a tiny little local CU and I spoke with the VP of lending about what she needed to endorse so I could get job built. She asked for contract/scope and I provided both.

She cut check a week ago Friday for acv amount with HO's name and my company's name on it. The following day I had appt with HO to choose shingle color, siding, etc and to collect check and set production date. Friday night at 9:30 I get a VM from some guy who says that he's a contractor and that my customer is now his and "sorry bout that". Turns out it was an out-of-state chaser who door knocked her that day and offered to eat her deductible. HO won't answer my calls now.

I spoke with lender again at her CU who said that the HO brought the check back the next day. I have an email from the lender who says both our names are on the check. Doesn't it then make that check both the HO and our property and be considered a down payment to us? Whether or not she actually holds it or we hold it, a check has been cut and made payable to us. How can a check with our name on it be re-deposited to her CU without our endorsement on it? I asked the woman and I could tell she was a little flustered and she said she would get back to me on it. That was 4 days ago. I've left her 2 VMs and sent an email asking to get back to me.

All I want to do is honor my part of the contract and do right by the HO by doing fantastic work with the best products/service/warranty available. I have the clause for 10% of the claim if the HO cancels, but of course she's on some kind of SSI or disability. I feel the check needs to be re-issued with both our names again and that she realizes she can't do anything with it without our endorsement and that we can just move forward and get this thing built.

Sorry for such a long-worded first post from a newbie, but I'm at my wit's end and any ideas would be greatly appreciated!


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## Dallas-Roofing (May 10, 2013)

The check that the home owner is getting from insurance company really should not matter to you as a roofer. The home owner still has to pay you the amount that is on your contract for the work that you performed. If the home owner has not fully paid you, you should immediately put a lien on the home. You can, based on your experience with the home owner, send a initial lien letter which is professionaly written and states pretty much "if you do not pay amount owed, there will be a lien inforced". Hopefully that will do the trick and get you paid the balance. 

Devin Mahdi
Roofing Lewisville TX


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## WIPro (Aug 24, 2013)

That's just it, the actual roof/siding/etc hasn't been put on yet. But everything leading up to it has. The insurance check was made payable to her and her credit union. The credit union then made a check out to the homeowner and us. The homeowner was then contacted by an out-of-state storm chaser who offered to eat her deductible.

She then took the check that had both our names on it back to her credit union where they deposited it back into their escrow account. My question is, how can a check with our name on it be deposited/cashed anywhere without our endorsement on it??

I want that check re-issued because then she has no choice but to have us finish the job because she has a check she can't do anything with without our endorsement, which we won't give until she endorses as well and we then do all the additional work.

It's my opinion that once a check has been cut and made payable to her and us, it's just as much our property as it is hers. I mean, we wouldn't be able to deposit it anywhere without her endorsement on the back... so how could she??

I think her rinky dink credit union just goofed by taking it back without our endorsement and that they need to re-issue it. Anyone see any holes in my opinion on this?


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