I've heard several stories of insurance companies issuing cheques with both the policy holders AND contractors, and people not being able to get them deposited in their banks. Why does this still happen?
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Some of the insurance companies, due to problems during Katrina when people were cashing the checks and using the money for something else and not paying for the repairs. Usually during the claims process, how and to whom the checks are issued can be set up. If do you get a check made out to you and the contractor, you can hold the check until the repairs are completed and sign/endorse the check and give it to the contractor for payment in full.