Can I keep the money paid out by my home insurance company instead of repairing my property?

I got a payout to patch up some drywall in my home. I'm wondering if I can just keep this money instead of fixing the drywall.

Technically, yes. You can keep the claim payout without having the repairs completed, but I wouldn’t recommend it. The insurance carrier will not make a payment on a duplicate claim, and they would most likely require proof of repairs completed if there was a loss to the same area of the home that should have been repaired.
Also, the carrier may require a home inspection, and if the home does not pass because the repairs were never made, the policy may be canceled. If the repairs are completed and there is money left over, it is yours to keep!
Shannon Martin
Answered on Mar 12, 2021
Shannon is an expert in personal lines liability insurance with 13 + years of insurance industry experience. She also served as a special insurance liaison to AARP members for 6 of those years. She is a graduate of UL Lafayette and currently resides in NY with her family. Shannon is also an amateur juggler, ukulele player, and is a time travel paradox theory enthusiast.

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