Welcome to the PENFED
Insurance Claim Assistance Portal
For services or support other than your Insurance Claim Check, contact PenFed at www.PenFed.org or 1-800-585-9055.
Need assistance with your Insurance Check? Call - 1-888-414-6550 E-Mail - LDP@PenFed.InsuranceChecks.com
Frequently Ask Questions:
Q. Why is PenFed listed as a payee on my insurance check?
A: When you purchased your home (or last refinanced), PenFed helped with that financing. PenFed also required you to obtain insurance on your home. Because you and PenFed both have a financial interest in the property, you are considered “co-insureds” on the insurance policy. As such, any payments issued for insurance claims will be payable to both you and PenFed.
Q. Will PenFed sign the check over to me?
A: That depends on the type of loss, the amount of the check and the status of your loan. For example, if the check is $4,000 and your loan is current, it is likely the check will be endorsed promptly with little or no documentation needed. If the check is $40,000 or you are delinquent on your loan, the process may have additional steps.
Q. How do I find out if PenFed will sign the check or not?
A: Contact a PenFed Customer Service Specialist. After review of the claim and your loan, if the check can be promptly endorsed by PenFed, you will be provided with instructions on how to obtain PenFed’s endorsement either via mail or in person at a PenFed branch office. If the check cannot be promptly endorsed and returned, you will receive other instructions.
Q. Why won’t PenFed simply sign the check over to me?
A: To protect their interest and help you to return your home to its pre-loss condition, PenFed will guide you through a process designed to ensure the funds are used to repair the property. If the loss is large, or your loan is delinquent, PenFed needs to take extra precaution to ensure repairs are completed and the home is restored (as outlined in your loan origination documents).
Q. If PenFed will not sign the check, what happens next?
A: You need to endorse the check and send it to PenFed. Typically, within 2 business days of receipt, your check will be deposited to an account connected with your loan and PenFed will contact you with guidance on the process. Depending on the type of loss, amount of check, and loan status, PenFed will advise how the funds will be handled. Here is an example of how the process works; if the check is $75,000 PenFed may release $25,000 up front, another $25,000 when half the repairs are completed and the remaining $25,000 when all repairs are completed.
Q. How does PenFed know when repairs are completed?
A: As repairs progress, PenFed will order physical property inspections to confirm the progress. Over a period of time, 1 to 3 inspections are usually ordered to confirm the progress of repairs. This is done at no cost to the member. The inspector will coordinate the appointment directly with you, the member, or your designee. The inspection reports will be sent to PenFed and disbursements will be made as each stage of the repairs are verified.
Q. What if I am not satisfied with the inspection?
A: We recommend you discuss the results of the inspection with the inspector personally during their visit, or discuss the repair progress with your contractor. You may also contact a PenFed Customer Service Specialist and we will review the inspection issue for resolution or a new inspection may be necessary.
Q. Do I have to use a contractor or can I make repairs myself?
A: That depends on the type of loss and your ability to make the repairs. If you are a skilled or licensed contractor that may be feasible. If the loss is large, structural in nature, requires building permits, or you are making improvements, PenFed may recommend you hire a licensed professional.
Q. What if I am not satisfied with the contractor?
A: In most cases, if you use a contractor PenFed will require you to use a licensed contractor and that you have a contract for the scope of repairs. If this was not done, and repairs have started or are completed, you should attempt to rectify this immediately with your contractor. If you have not paid your contractor, do not do so until the repairs are completed to your satisfaction. You may elect to engage a new contractor or, if warranted, file a complaint with your state or local General Contractor Board.
Q. How long does it takes to get checks signed or to receive a disbursement by PenFed?
A: We want to get the funds to you as quickly as possible. Our goal is to endorse and release your check within 2 business days. The timeline from the date you mail the check to our office, we review your claim and loan, endorse the check to you and mail it back, is approximately 5 business days. Funds are usually disbursed within 2 business days following completion of a physical inspection which confirms the progress of repairs (excluding mailing time).
Q. If PenFed is holding my insurance claim funds while repairs are made, how long does the entire process take?
A: The timeline from the claim payment to final disbursement, can vary significantly. For a small loss, it may take as little as 2 weeks to verify repairs are completed, collect all documents and release the funds. For a large claim, such as a total property loss, it can take 6 months or more (this largely depends on your contractor). The average timeline is approximately 3 months. Be assured PenFed wants to get you back into your home (if you are displaced) as soon as possible and is here to guide you through every step along the way.
Q. Can my contractor, Public Adjuster, or any other party be included in communications and on disbursements?
A: Yes, with your written approval. You need to request a “Third Party Authorization” form from your assigned PenFed Customer Service Specialist. We recommend that if you authorize disbursements to other parties, that you are included as a joint payee. This helps to ensure that the other party cannot negotiate the check until you are satisfied with the service provided.
Q. What do I do if my insurance carrier is not being cooperative, advises I do not have coverage, is not paying me enough, or has denied my claim?
A: Ensure your claim was submitted in writing or acknowledged in writing by your carrier. If not, rectify that immediately. Contact your insurance agent who sold you the policy. Escalate to the insurance carrier management, preferably in writing. Most carriers have a corporate website for contact information.
Q. What do I do if as a result of this loss, I will not be able to make my loan payments?
A: Contact PenFed Customer Service at 800# to discuss your situation and see what options are available to you. Our goal is to do everything we can to help you recover from this loss and keep you in your home.

TIPS FOR SELECTING A CONTRACTOR AND PREVENTING FRAUD

While most contractors are reputable, contractor fraud and price gouging does occur. For help with contractor fraud, contact your state’s contractor board or Attorney General’s office.

Protect Yourself

  • Be cautious of contractors making unsolicited repair offers. Fraudulent proposals are often made by contractors who offer services door-to-door.
  • Choose a contractor who has an established business in your area. Review their ratings and references on websites such as Yelp or Home Adviser. Check with the Better Business Bureau for any complaints.
  • Ensure the contractor is licensed, insured and bonded. Verify the license on state contractor board websites. Ask to see their insurance policy and bonds.
  • Get written estimates from three legit contractors, using the same plans and specifications. Be careful of bids that are significantly lower as there may be mistakes or omissions. Choose the one you are most comfortable with.
  • Get a detailed written contract before allowing any work to be done. Be sure it includes the specific repair details, total cost, time for completion, payment schedules, etc.
  • Never sign a contract with blanks or incomplete sections — terms or Conditions you didn’t agree to could be added later.
  • Make sure the contractor obtains building permits if applicable.
  • If a contractor requires a deposit prior to start of repairs, only pay a portion of the total contract amount. Don’t pay with cash and don’t sign over your claim check to a contractor unless this has been agreed upon by all parties, including your loan servicer.
  • Don’t make the final payment until the job is finished, you are satisfied with the work and you have all needed approvals from your loan servicer or city if applicable.
  • Don’t feel pressured by a contractor or allow a contractor to interpret your homeowner’s insurance policy. Contact your insurance company or a Public Adjuster if you have any questions about your policy coverage.