First Federal Credit Union

Insurance Claims Checks

Understanding the claim process:

First Federal Credit Union, as your lender, is listed as payee on your insurance claim check. The interest we hold in the real property/collateral warrants us to oversee the repairs and disburse the insurance claim funds accordingly.

First Federal Credit Union requires the following documentation:

  • Claim check endorsed by all parties prior to sending to First Federal Credit Union for endorsement
  • Copy of the Insurance Adjustor's Report
  • Restoration Affidavit signed by all borrowers, found in this brochure
  • Contractor bid/estimate (if available)

Type of Claims:

First Federal Credit Union will classify your insurance loss based on your loan and amount of loss as monitored or non-monitored.

Non-Monitored Claim:

Check is issued to borrowers for full amount to be used for payment of repairs

Once Repairs are completed:

  • Send Evidence of restoration (paid receipts & pictures) to
  • Loan servicing will endorse depreciation check (if applicable)

Monitored Claim:

  • Check is deposited into a restricted escrow account to be disbursed in increments upon request.
  • Inspection(s) periodically and at completion*
  • Contractor(s) completed W-9 form prior to completion.
  • Check is made payable to borrowers and contractor for completed repair
*Inspection time may vary due to volume which could delay disbursement checks




Frequently Asked Questions

What is an Adjustor's Report?

Your Insurance Company's itemized list of damages and the estimated costs to repair.

How does First Federal Credit Union determine if my claim is Monitored or Non-Monitored?

Based on your loan and amount of loss will determine the type of claim

What is restricted escrow account?

A separate escrow account to hold insurance funds to be disbursed to you and your contractor as work is completed

If my claim check is larger than my principal balance may I payoff my loan with the funds?

Yes, so long as the insurance check will fulfill the calculated payoff amount. Any funds exceeding the payoff will be refunded to you


If you have any questions, please contact our Loan Department:

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