A monitored amount is simply the monetary threshold at which a loss drafts claim becomes much more complicated. In even simpler terms, if you are under the monitored amount most mortgage companies will allow you to mail in your check with only the adjuster’s report, they will stamp/sign it, and return it to you ready to cash. If you are over the monitored amount, then you must comply with all their policies and complete all of their documents.
So, what is THE monitored amount? It is arbitrarily set by each company. For the majority of mortgage companies it is $10,000, but it ranges from static amounts of $2,000 to $25,000, or can be a percentage of home value, can be derived from loan to equity, or anything in between.
Why is this amount important and why does it exist? First, this amount is very important for you because it clearly distinguishes what will be needed to get an endorsement on Your Company’s check. Monitored amounts exist to protect mortgage company’s investments and to make sure that the insurance check was used to repair their property and not used for a home owner’s Vegas vacation.
One final, very important caveat is that monitored amounts are universally determined by the TOTAL CLAIM amount, not just the total of your check! This is very important to know so that you are not wasting time and overnight mail costs. A common mistake for many mitigation/restoration contractors is to see the amount of your claim check and think that Your Company’s claim check is just under the monitored amount so you won’t need all the documentation and inspections. After waiting for three weeks and getting back a non-endorsed check, you are right back where you started.
To summarize, a monitored amount is an arbitrary amount set by each mortgage company at which they will make sure (by means of documentation and inspections) that claim money has been used to repair their property. The required documentation for endorsement of any check is set by the TOTAL CLAIM amount being either above or below this amount.
Now go and get Your Money Faster.