Q: A storm damaged our roof, and we filed a claim. The insurance company finally sent the check, but it is made out to our mortgage company and us, and now the mortgage company says it will hold the money and release it as the work gets done. We are current on our loan and just want to pay our roofer and be done with it. Can they really do this? — Renee

A: Yes, they can. Although it may feel like your money is being held hostage, there is a logical reason for it.

Your home is the collateral for your mortgage, which is why your loan documents require you to carry hazard insurance and to name your lender on the policy.

When the home is damaged, the lender has a genuine interest in ensuring the damage is actually repaired, not simply paid out and spent on something else.

That is why the insurance company made the check payable to both of you and why you cannot cash it without the lender’s endorsement.

How the lender handles the funds depends mostly on the size of the claim and whether your loan is current.

For smaller losses, many lenders will simply endorse the check and send it back to you so you can manage the repairs yourself.

For a larger claim, the lender usually places the funds in an account and releases them in stages as the work progresses. A common approach is to release about a third of the funds up front so you can get started, another portion once an inspection confirms the repairs are partially complete, and the balance once a final inspection shows the job is finished.

Because you are current on your loan, the lender should release these funds for the repairs, not apply them to your balance.

This is more of a paperwork exercise than a legal fight, and most delays stem from handling it incorrectly.

Contact your lender’s loss draft department directly, rather than regular customer service, and ask for their specific requirements before doing anything else. Do not endorse the check until they tell you to, and when you send it in, send the complete package the first time, because a missing form is the most common reason these claims stall. Submit your adjuster’s estimate, stay in regular contact, and request each inspection promptly so the next payment can be released.

Keep a written record of everyone you speak with and every document you send, and keep your loan current throughout, since falling behind gives the lender a reason to hold the funds.

If the lender sits on the money without a good reason after the work has been inspected, that’s when you should have an attorney send a letter on your behalf.

Handled properly, this is routine, and the money is still yours to rebuild your home.

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