INSURANCE CLAIM PAYOUTS
Flood-impacted people who are insured need to be aware of some of the processes around insurance payouts.
For people who have a mortgage on their homes, the bank has the right to receive the insurance payout to the amount on the home loan.
This means, once an insurance claim has been settled and an agreement reached, a lump sum of the payout could go directly to the bank to pay off any loan on a property.
There are also a few terms that can be confusing.
A mortgage is the ‘ownership’ the bank has over the title of a property as part of a loan. The loan is the money that you borrow from the bank.
So, even though your insurance payment may be used to pay off your loan, the bank may still hold a mortgage using your property as security.
Each bank has a slightly different process, and the key is to work with your bank so you are aware of what will occur. Paying off your house loan does not stop you from drawing down a new loan to pay for repairs for your property – depending on the work that is required and
the security held over the property.
If you are unsure about how insurance payouts work, particularly regarding banks , mortgages and loans, please contact the Recovery Office and we can put you in touch with the right professional people to offer advice.
For people who have a mortgage on their homes, the bank has the right to receive the insurance payout to the amount on the home loan.
This means, once an insurance claim has been settled and an agreement reached, a lump sum of the payout could go directly to the bank to pay off any loan on a property.
There are also a few terms that can be confusing.
A mortgage is the ‘ownership’ the bank has over the title of a property as part of a loan. The loan is the money that you borrow from the bank.
So, even though your insurance payment may be used to pay off your loan, the bank may still hold a mortgage using your property as security.
Each bank has a slightly different process, and the key is to work with your bank so you are aware of what will occur. Paying off your house loan does not stop you from drawing down a new loan to pay for repairs for your property – depending on the work that is required and
the security held over the property.
If you are unsure about how insurance payouts work, particularly regarding banks , mortgages and loans, please contact the Recovery Office and we can put you in touch with the right professional people to offer advice.
INSURANCE SUPPORT
Sorting out your post-Cyclone Gabrielle insurance needs can be confusing and take a long time. If you need support with an insurance claim, the New Zealand Claims Resolution Service can help you access the services you need to help resolve your situation.
The Claims Resolution Service provides free advice, case management where appropriate and access to legal, engineering and wellbeing support, tailored to individual’s needs.
This service can also help you with information about your service, for example did you know that often your insurance policy will cover a full assessment of your home?
If your insurance providers’ response is too slow or not happening at all, please use this free service.
The Claims Resolution Service provides free advice, case management where appropriate and access to legal, engineering and wellbeing support, tailored to individual’s needs.
This service can also help you with information about your service, for example did you know that often your insurance policy will cover a full assessment of your home?
If your insurance providers’ response is too slow or not happening at all, please use this free service.