Insurance Claim Settlement Check are made payable to all Interested Parties
Even the Mortgage Company(ies) and former spouses, lovers, flings, brothers, sisters, daughters, sons, aunts and uncles who may be in title.
Insurance drafts are made payable to all the owners and first lien holders who are in title (the bank) and so they require approval of ALL named insured before they can be cashed [even ex-spouses and former jilted lovers who may still be in title].
Because these customers chose to hire individual contractors and repairmen instead of using a certified Restoration Company who could have billed the insurance company directly, they need to cash the checks in order to pay for the repairs. The simple truth here is that most of the people who are doing the repairs are out of work contractors who are no longer building homes and do not have the money to fund the cost of materials and in most cases need a “draw” to by materials and most lenders will not advance or front any upfront costs and will only disburse for work completed.