News 461 Proposal Asks Florida Home Insurers Pay 20 Directly Homeowner Sun Sentinel

In a proposal announced on Monday, Florida State Chief Financial Officer Tom Gallagher asked state legislators to approve a bill that would require home insurance companies in the state to pay at least 20% of a homeowner's claim check directly to the homeowner. Currently, a homeowner's mortgage company has to sign the check before they see any money. The process can take weeks after a claim has been filed, delaying repair work and making many rebuilding situations worse or forcing the homeowner to pay for repairs out-of-pocket while waiting for reimbursement. Opponents of the proposal say that 20% is not enough, they would like to see 50% go directly to homeowners. Gallagher says he didn't ask for 50% because he wants to maintain a fair balance between the needs of homeowners and the rights and risks of lenders.

Read more: Legislation would send some insurance cash directly to homeowners (Sun-Sentinel) Homeowners eager to get insurance money to start repairs after a fire or hurricane would no longer have to wait on their mortgage lenders' signatures to pocket some of the cash, under a proposal announced Monday.