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Understanding Homeowners Insurance Claims

As part of your home-owning experience, there may come a time when your home is damaged by a fire, flood or accident, which will require you to file a homeowner’s insurance claim. We understand that this can be a very stressful situation, and knowing what to do can, at times, be quite confusing.

Just as each loss is unique, the procedures for handling a loss will depend on your situation. Here are the general guidelines to assist you through the insurance claims process as it relates to your mortgage loan. Click here to browse our other mortgage resource guides.

If you experience damage to your home, the first step is to report the loss to your insurance company and file an insurance claim. In the process of settling the claim, your insurance company may issue an insurance check and include the lender as one of the payees. This insurance claim check is called a Loss Draft check.

If this happens with a mortgage loan from Santander Bank, please contact our Loss Draft Department and speak to one of our specially trained Loss Draft representatives, who will guide you through the process.

Before making the call, please have the following information available for reference:

  • The dollar amount of your loss draft check
  • A copy of the Insurance Adjuster's Report, if available

The Loss Draft representative will discuss your situation and explain the steps to be taken based on both the amount of your Loss Draft check and the status of your loan. While taking both of these into consideration, the Loss Draft representative will identify what is called your "threshold," which will determine whether your Loss Draft check can be signed by us and released back to you, or if your insurance claim will need to be monitored until all required repairs have been completed, in which case your Loss Draft check will not be returned to you, but will be managed by us on your behalf.

Examples of common homeowner's insurance claim scenarios:

  1. If your Loss Draft check is under the threshold and your account status is current, you will be asked to mail in a full copy of the Insurance Adjuster’s Report as well as the unsigned or unendorsed Loss Draft check. Please note that it is critical that you do not sign the back of the Loss Draft check. In addition, please write your loan number on the front of the Loss Draft check as well as on the Insurance Adjuster’s Report so that your documents can be easily identified. When you speak with a Loss Draft representative to discuss your individual circumstances, they will provide guidelines for processing your Loss Draft check and the address to send your unsigned Loss Draft check and Insurance Adjuster’s Report.
     
  2. If your Loss Draft check is over the threshold and your account status is current, the Loss Draft representative will inform you of the documents that need to be sent in along with the signed or endorsed Loss Draft check. Please include your loan number on the front of the Loss Draft check and on all documents so that your documents can be easily identified. Proceeds from the Loss Draft check will be released in partial amounts, with inspections being completed by an independent inspector throughout the home repair process. At this time, you will be assigned one person within the Loss Draft Department who will assist you for the remainder of the Loss Draft process.
     
  3. If your account status is not current, such as in the case of a delinquency or foreclosure, the way in which Loss Draft proceeds are disbursed will be affected. The Loss Draft representative will discuss your individual circumstances for filing your homeowner’s insurance claim.

We understand that dealing with damage to your home can be a very emotional and uncertain time. Please know that we are here to help. Our Loss Draft representatives are experienced and available to help guide you. Contact a Customer Service Center Advisor today at 877-592-0192 from 8 a.m. to 5 p.m. ET, Monday through Friday, to be connected to a Loss Draft representative. Please note that this information is intended for Santander customers in the United States; different rules and regulations apply to our customers outside of the United States.

©  Santander Bank, N. A. Equal Housing Lender Equal Housing Lender - Member FDIC

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