A joint check can protect the lender's interest in the property. Contact your mortgage servicer's insurance-loss department for its endorsement and fund-release process before promising a contractor a payment date. Ask what documents, inspections and completed-work milestones are needed and whether an initial draw is available. The CFPB explains that funds are often released in stages, with a final release after completion and inspection. Keep the insurer's settlement details separate from the lender's release requirements, and match your contractor payment schedule to confirmed funding arrangements.
Costs and insurance