How to Cash an Insurance Settlement Check

Cashing an insurance settlement check requires a joint effort among all parties that have a stake in having the insurance settlement check cashed. The policies and procedures to do this will vary among mortgage companies and banks. When you receive a settlement check, call the company you are dealing with to see what they require to cash the insurance settlement check.

Call the mortgage company or bank and let them know the insurance settlement check was received. The check is payable to the company and the policy holder or customer.

Endorse the check and let the company know they must also endorse the check. Send the check to the bank or mortgage company for endorsement. The company will let you know which department to send the check to, such as the loss draft department. After endorsing the check, the company will send it back to you. Any other payees on the check must also endorse it, including a spouse or the contractor.

Deposit the check into your checking account after it is endorsed by the mortgage company or bank.

Wait for the check to clear, then issue your own personal check to the contractor who is having your home repaired, or to the auto repair shop handling the repairs on your car, if this is an auto claim.


  • Some banks have different requirements for large checks, such as $10,000. You may have to provide an insurance loss report as well as the contractor's bid.


  • If your loan or mortgage is not up-to-date, the check may be issued in installments by the company you owe money to regarding your loan.