Can I use my home insurance claim money on something else?

I was paid out a claim for damage. Do I have to fix the damage? I could really use the money for bills.

Answer
“It’s completely understandable that you want to use the claim damage for something else. Unfortunately, you need to use the claim payout to fix the repairs.
The purpose of insurance is to not benefit financially from a transaction. If you submit a claim and use the money for your own benefit, you are deceiving the insurance company. They could view this as fraud and choose to cancel your policy as well as report you to the state. You also risk not having future damage covered. If the unfixed damage causes more damage, your insurance company will deny future claims.
However, any leftover money after the repair bills are paid can be used at your discretion unless specifically stated in your contract. This is different than car insurance claims, where the insurer usually pays the repair company directly.
While you may need the money now, you still have to repair the damage in the future. Home insurance claims are typically much larger and more significant than car insurance claims, so it’s likely you won’t be able to ignore the damage.
If you want some extra money for bills, you still have other options. Consider doing a cash-out refinance on your car loan or switching to a cheaper car insurance company. To get great quotes from over 50 reputable insurance company, download the Jerry app.”
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Emily Maracle
Answered on Sep 09, 2021
Emily Maracle is a car insurance specialist living in New York. Originally from the Pacific Northwest, she has a degree in English Literature and a background in customer service. She enjoys cooking, gardening, and living sustainably. In the future, she can't wait to upgrade to a hybrid or electric car.
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