[tammyrat]

We recently had a sinkhole claim and our home was deemed a total loss. They have paid for the dwelling and the check has went to the mortgage holder but we still hold a mortgage because the dwelling was less than the full mortgage. We have to get out of the home. We have been packing and moving all of our belongings out and have to find a place to rent until we can build a new home somewhere else. We are needing to know how we are expected to come up with all the money to rent a place (loss of Rents) and how we can get reimbursement from the insurance company before we have to pay all up front? They are talking incurred expense such as was explained to us as if we had a 700.00 mortgage and we rented for 1000.00 they would only pay 300.00 difference. Incurred expense, but we are still paying a mortgage and that would be over and above and we can't afford that. We do not understand how come we have to come up with all this money first then send them a receipt and hope that they pay it. Even though we have on our policy 33,000.00 loss of rents and additional living expense.

HELP:confused:

[Fr_Chuck]

First I am not sure you should have settled for less than the full amount of the mortgage, did youi have an attorney working with you?

Also since the mortgage should be just the value of the land, that should not be that much, can you refinace that much lower amount so that your payments will be a lot less.

But yes, they expext you to pay it first and they pay you back.

[RichardBondMan]

I am not sure I understand your situation but it could be that you had no "sinkhole" coverage on your homeowner's policy. The law in most states is such that the mortgage company always has to be protected. Let me give you an example, a true one. I worked for an insurance company, gentleman that had a homeowner's policy with us went crazy decided to torch his home in broad daylight with neighbors watching. We had to pay his mortgage company but not him since arson is illegal. He lost his "equity" in the home but his mortgage was paid. Could it be that you dd not have coverage for sinkhole damage/loss? I know I live in an area that is not known for having earthquakes therefore, I don't spend the extra $ 30- $ 40 per year for "earthquake" coverage nor do I have sinkhole coverage. Is this your situation ?

[ScottGem]

Policies are different. Each policy may or may not cover certain things or cover them in certain ways. The purpose of insurance is to make you whole after some damage. I would go to your insurance agent and ask them to explain exactly how your policy was written and how your coverage works.