After a major natural disaster there are many situations where you could receive back payments from the government in order to pay for damages. As part of the relief effort depositing these payment checks can actually have a negative effect on your insurance and also receiving compensation through insurance.
If you receive any type of government payment or settlement as a result of hurricane damage, you might see that the endorsement on the check includes a definitive payment or final endorsement. Any type of final endorsement or definitive payment could result in consequences as a result of you signing or depositing the check.
If a creditor accepts payment from any carrier there needs to be an understanding of the balance between the carrier and creditor that this could be a debt that requires payment. Creditors may also not return to check if they accept it from the carrier and deposit it. Accepting and endorsing a check or level of support suggests that any debts would be extinct from the creditor and this could directly affect insurance payouts or your credit history.
Insurance claims could quickly be dismissed if a policyholder has deposited a check from another entity after a disaster. As long as you have a clear understanding of accepting a check, endorsing it and then depositing the payment then your insurance company may deny you access to your insurance claim coverage. Contact Jenkins Law P.L. today for a free consultation on your specific claim.
This post was written by Kelly-Anne Jenkins of Jenkins Law P.L. Kelly-Anne is an insurance claims lawyer. She specializes in personal injury, car accidents, and bicyclist injury. The information on this site is not intended to and does not offer legal advice, legal recommendations or legal representation on any matter. Hiring an attorney is an important decision, which should not be based on advertising. You need to consult an attorney for legal advice regarding your individual situation.