Insurance Loss Claims Guide

Frequently Asked Questions:

Q. Why is my insurance claim check payable to both Penfed and me?
Q. Will Penfed endorse my claim check?
Q. Can I pay my loan balance in full with my insurance claim check?
Q. May I use my claim check to pay my past due payments?
Q. My claim amount is greater than the principal balance on my loan.
Q. What are the specific guidelines for processing a loss claim?
Q. My claim is $20,000 or less.
Q. My claim is between $20,001 - $35,000.
Q. My claim is greater than $35,000.
Q. My claim is a Total or Near-Total Loss.
Q. What documents do I need to complete my claim?
Q. Where should I mail my claim check and documents?
Q. May I go to a PenFed branch and have my claim check endorsed?
Q. May I have my insurance claim check returned to me by overnight delivery?
 

We're responsible for ensuring that repairs are satisfactorily completed and your home is restored to its preexisting condition.

Q. Why is my insurance claim check payable to both Penfed and me? 

Q. Will Penfed endorse my claim check? 

If your payments are current and your claim is $20,000 or less, upon receipt of the required documents, we'll endorse the check and send it back to you. If the claim is greater then $20,001, please see below for specific instructions.

Q. Can I pay my loan balance in full with my insurance claim check? 

If your claim amount is greater than your outstanding loan balance, you may pay off your balance. Before doing so, please obtain a payoff quote from us to ensure that your claim funds will cover the total outstanding amount.

Q. May I use my claim funds to pay my past due payments? 

Insurance claim funds are intended to repair your home to its preexisting condition. You may not apply your insurance claim check to any past due payments on your mortgage unless it's enough to pay the full loan balance.

Q. My claim amount is greater than the principal balance on my loan. 

If you choose to payoff your loan and your claim amount exceeds your principal balance, we'll release the difference to you.

Q. What are the specific guidelines for processing a loss claim? 

Before we can release any insurance claim funds to you, your mortgage payments must be current .

Q. My claim amount is $20,000 or less. 

If your mortgage payments are current, please mail the unendorsed check along with the following documents:

  • Copy of the letter from the insurance company received with the check
  • Insurance Adjuster's Report
  • Signed Certification of Intent to Repair/Homeowner Completed Repairs  
  • Upon receipt of all the above documents, we'll endorse and return your check within five business days. If your mortgage payments are not current, please call us at 1-800-585-9055 for assistance with your claim.

Q. My claim amount is between $20,001 - $35,000. 

If your mortgage payments are current, please mail the unendorsed check along with the following documents:

  • Copy of the letter from the insurance company received with the check
  • Insurance Adjuster's Report
  • Copy of Contractor's Estimate and Contract Agreement by a licensed and insured contractor
  • Completed and signed Conditional Waiver of Lien signed by Contractor(s)
  • Signed Member's Affidavit Repair Certification/Loss Draft Release

Upon receipt of all the above documents, we'll endorse and return your check within five business days. If your mortgage payments are not current, please call us at 1-800-585-9055 for assistance with your claim.

Q. My claim is greater than $35,000. 

If your mortgage payments are current, please endorse the claim check and mail to Penfed along with the following documents:

  • Copy of the letter from the insurance company received with the check
  • Insurance Adjuster's Report
  • Copy of Contractor's Estimate and Contract Agreement by a licensed and insured contractor
  • Completed and signed Conditional Waiver of Lien signed by Contractor. Please note if you have multiple contractors, a Conditional Waiver of Lien must be completed and signed by each contractor.
  • Signed Member's Affidavit Repair Certification/Loss Draft Release

We'll deposit the insurance check into an interest bearing escrow account and disburse as follows:

  1. The first one-third (1/3rd) of the total claim amount will be disbursed payable to all borrowers and the contractor to begin the repairs.
  2. The second one-third (1/3rd) will be disbursed upon receipt of a report from our inspector indicating 50% of the repairs have been completed. Please contact us at 1-800-585-9055 to request the inspection. The inspection will be scheduled within five days from receiving your request.
  3. The remaining claim funds will be disbursed upon receipt of the following:

A final inspection report by our inspector indicating the repairs are 100% complete.

Q. My claim is a Total or Near Total Loss or my loan is past due more than 30 days or I have filed for Bankruptcy. 

Please endorse the claim check and mail to PenFed along with the following documents:

  • Copy of the letter from the insurance company received with the check
  • Insurance Adjuster's Report
  • Copy of Contractor's Estimate and Contract Agreement by a licensed and insured contractor
  • Completed and signed Conditional Waiver of Lien signed by Contractor. Please note if you have multiple contractors, a Conditional Waiver of Lien must be completed and signed by each contractor.
  • Signed Member's Affidavit Repair Certification/Loss Draft Release

We'll deposit the insurance check into an interest bearing escrow account and disburse as follows:

  1. The first one-third (1/3rd) of the total claim amount will be disbursed payable to all borrowers and the contractor to begin the repairs.
  2. The second one-third (1/3rd) will be disbursed upon receipt of a report from our inspector indicating 50% of the repairs have been completed. Please contact us at 1-800-585-9055 to request the inspection. The inspection will be scheduled within five days from receiving your request.
  3. The remaining claim funds will be disbursed upon receipt of the following:

A final inspection report by our inspector indicating the repairs are 100% complete.

Q. What documents do I need to complete my claim? 

Below, find a detailed explanation of the documents you may need when you forward the insurance claim to up for endorsement.

  • Adjuster's Report or Estimate – An Adjuster's Report or estimate is an itemized list of damages to the property provided by the insurance company. The Adjuster's Report outlines the total amount allotted for each portion of your claim.
  • Contractor's Estimate – A Contractor's Estimate is the written proposal that the contractor will provide to you itemizing the total cost to repair your home.
  • Member's Affidavit Repair Certification/Loss Draft Release – The Member's Affidavit must be signed by all borrowers on the loan. By signing this form, you are acknowledging your intent to repair the damaged property and agree to pay all contractor's and bills related to the repairs to the property. You also agree that no material or labor liens will occur as a result of labor performed and/or materials used.
  • Conditional Waiver of Lien – The Conditional Waiver of Lien is completed by your contractor confirming that the contractor will waive any claims of lien conditional on receiving payment in full for labor and materials.
  • Certification of Intent to Repair/Homeowner Completed Repairs. The Certification of Intent to Repair/Homeowner Completed Repairs is to be signed by all borrowers on the loan. By signing this form, you are acknowledging your intent to repair the damaged property and agree to pay all contractor's and bills related to the repairs to the property. You also agree that no material or labor liens will occur as a result of labor performed and/or materials used.

Q. Where should I mail my claim check and documents? 

Overnight delivery: 

Pentagon Federal Credit Union
Attn: Mortgage Loan Servicing
2930 Eisenhower Avenue
Alexandria, VA 22314
 

First Class Mail delivery:
PenFed
Attn: Mortgage Loan Servicing
PO Box 320610
Alexandria, VA 22320-4610

Q. May I go to a PenFed branch and have my claim check endorsed?
You may take your claim check to any PenFed branch along with all the required documents for endorsement as long as the claim is less than $35,000, not a Total or Near Total Loss; the loan is not past due more than 30 days; or you have not filed for Bankruptcy.

Q. May I have my insurance claim check returned to me by overnight delivery?
If you provide PenFed with a pre-paid overnight delivery label and envelope, we will return your check to you by overnight delivery.