If you file a claim and the insurance coumpany issues you a check, do you have to fix the problem reported or can you use the money for other repairs?
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If you file a claim and the insurance coumpany issues you a check, do you have to fix the problem reported or can you use the money for other repairs?
Or even just keep the money?
Asked on September 20, 2014 under Insurance Law, Tennessee
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 10 years ago | Contributor
As a general matter, you could do with the money what you wish, so long as the claim was not based on fraudulent information (i.e. the problem was real, any estimates were legitimate, etc.). If there is something in your specific policy or any other agreements with the insurer prohibiting you from doing this, however, you'd have to abide by the terms of such agreements. You should therefore review your agreemens with the bank to see what is and is not allowed.
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