With the hail storms, damaging winds and various weather Oklahoma brings, you may have insurance claims on collateral that has been funded by an FAA Credit Union loan. Below are some common insurance questions and their answers.
#1. I’ve received an insurance check for damage to my vehicle. What should I do?
- If FAA Credit Union has a loan on the vehicle, we will need to receive proof the repairs to the vehicle have been completed before we will release the funds to you.
- We will deposit the check and place it on hold until we receive proof the repairs are complete and then release the funds to pay for the repairs.
- If the decision is made not to repair the vehicle, then the amount of the check will be applied to the principal loan balance only. We do not use these funds to make the regular monthly payment— only to pay down the principal loan amount.
#2. What if the amount of repairs is less than the amount of the check?
- There are situations in which the actual cost of repairs is less than the estimated amount. Upon proof of completion of repairs to the vehicle, the remaining amount will be either deposited to the member’s account or applied to the principal of the loan at the credit union’s discretion.
#3. I’ve received an insurance check for damage to my home. What should I do?
- If FAA Credit Union has a loan on your home, then we will need to receive proof the repairs have been completed before we release the funds to you.
- You should bring a copy of the adjuster’s report, which details the damage to the property, as well as how the claim check amount was calculated.
- We will need to discuss the plan for repairs and estimated timeline for completion. If you have already received an estimate for repairs from the contractor, please provide a copy of that as well.
- Depending on the amount of the check and type of mortgage you have, we will make a decision on how the insurance claim check can be handled. You may be able to draw a certain percentage of the funds after a period of time to purchase materials and get repairs started.
- If you are having someone else complete the repairs, we will need to receive proof from the contractor that the repairs have been completed prior to releasing the funds.
#4. What if I don’t have a loan on my auto or home with FAA Credit Union?
- We will deposit your check into your account and regular check holds will apply. A standard hold is 2 business days and an exception hold can be up to 7 business days (new member accounts may have longer hold times— up to 9 business days).
If you have additional questions, please contact FAA Credit Union at (405) 682-1990.