Does My Property Insurance Pay a Contractor Directly in Fort Lauderdale?

Even if your property insurance company agrees to pay for the damage to your home, the manner in which they pay for the damage may vary. You may wonder whether the insurance company will pay the contractor, or whether you will simply receive a check for the amount you need for the repairs. To learn more about the next steps, consider speaking with an experienced property insurance lawyer in Fort Lauderdale.

Most Insurance Companies Pay Their Policyholders Directly

The Florida Insurance Information Portal, most insurance companies pay their policyholders “directly” if policies do not state otherwise. However, the information portal also states that if you and your mortgage lender are joint beneficiaries, payments may occur differently. Specifically, the money may go into an “escrow account.” You and your mortgage lender can then pay for repairs and replacements using the money in the account.

It’s best to wait until the property insurer provides your compensation before getting started on repairs. Although contractors might offer to conduct these repairs ahead of time, you could find yourself in a difficult situation if you experience a denied insurance claim in Fort Lauderdale. If this occurs, you will owe the contractor money, and you might not be able to pay them back. The contractor may then put a lien on your home, which can complicate your life to a significant extent.

You should also avoid keeping the insurance money for yourself instead of immediately paying for the necessary repairs to your home. Although it might seem tempting to keep some or all of the money, it’s important to remember that filing an insurance claim should not be profitable or enriching in any way. The purpose of home insurance is to fix the damage to your home, and nothing more.

Be Wary of Contractor Fraud

In this situation, it is important to be extremely wary of contractor fraud. Many contractors prey on those dealing with property damage, and they may attempt all kinds of misconduct. First, you should avoid paying your contractor all at once for their work. Instead, consider making partial payments while the work is being completed. With this approach, you can dissuade the contractor from vanishing with the insurance money without completing the project.

You should also be wary of various types of fraud highlighted by Florida Consumer Services. Contractors might offer to falsely claim that the damage does not exist, arguing that this will save you from paying a deductible. Your contractor might also try to convince you to prevent the insurance company from inspecting their repairs. Be very wary of these tactics.

Contact Our Fort Lauderdale Property Insurance Lawyers Today

At Geyer Fuxa Tyler, our legal team is made up of a diverse combination of attorneys who are well-positioned to protect the legal rights and financial interests of policyholders. If your property insurance claim was denied, we can help. For a free consultation, please call us today at (954) 990-5251. With an office in Sunrise, we represent policyholders in Broward County and throughout the state of Florida.

Sources:

 floridainsurance.org/claims

mynews13.com/fl/orlando/political-connections/2025/10/21/politically-motivated-violence–property-insurance

myfloridacfo.com/division/consumers/storm/contractor-residential-property-faqs