My wife and I sustained damage to our in-ground pool from Hurricane Sandy. The insurance company is Liberty Mutual. Because the check was over $5000, Liberty Mutual stated that the check must be double endorsed by the homeowner and the mortgage servicing company. The mortgage servicer advised us to sign the check, submit same with a signed contract from the pool contractor, and a waiver of lien from the contractor. The servicers' documents clearly state that upon receipt of these documents, that 1/3 of the money will be released payable to both the contractor and homeowner. In addition, upon 50% inspection of the repair work, and satisfactory report from the inspection agency, another 1/3 was supposed to be released.Well...THE WORK IS 100% COMPLETE AND NO MONEY HAS BEEN RELEASED! My wife and I feel that because we have an active foreclosure and trying to negotiate a loan modification, via an attorney, the servicer is punishing us. To show good faith on our part, we have made arrangements with the contractor to pay out of pocket. We feel that this is a regulatory violation from one or more federal and/or state agencies. 1. What federal and/or state regulation/statute does this violate? 2. Can we legally sue them? 3. What are our rights? They are holding our check hostage!
New York

About The Expert

Amy Bach

Amy Bach has been a professional advocate for insurance policyholders since 1984 and an attorney since 1989. She co-founded United Policyholders in 1991 and serves as the organization's Executive Director and primary spokesperson; shaping and overseeing the Roadmap to Recovery™, Roadmap to Preparedness, and Advocacy and Action programs. She is a nationally recognized expert on insurance claim and legal matters; frequently interviewed in print and broadcast media, and the author of numerous publications including "The Disaster Recovery Handbook", "WISE UP: The Savvy Consumer's Guide to Buying Insurance" and consumer tips and guides in the UP Claim Help Library.  Recognized by Money Magazine as a Money Hero, Bach is in her eighth consecutive term as an official consumer representative to the National Association of Insurance Commissioners, and is a member of the Federal Advisory Committee on Insurance.