FAQs

What is the insurance claim check process?

When your home sustains damage, your insurance company will issue a claim check (sometimes called “loss draft funds”) to cover the cost of your repairs.

Because Pennymac is listed on your insurance policy to protect the mortgage, your insurance company will usually make this check payable to both you and Pennymac. This means you will need our endorsement before the funds can be used.

How we process your check depends entirely on the total claim amount and the current status of your loan:

  • For claims under $40,000 (and current accounts): We will typically endorse the check and send it directly back to you so you can pay your contractors and complete the repairs right away.
  • For claims over $40,000 (or delinquent accounts): We are required to deposit the check into a secure account. As your repairs are completed, we will release the funds to you in partial increments (called “draws”). This process requires you to submit specific repair documents and may involve property inspections to verify the work is being done.

What to do when you receive a check:

Please do not sign the check or write on it until you have contacted us! Every claim is a little different, and our Loss Draft Department will walk you through the exact steps and documents required for your specific situation.