Timely and Unconditional Release of Insurance Proceeds/Lender Claims For Natural Disasters

Here is the scenario: Best case…it takes the insurance company a month after the event to get a check made out to both you and your mortgage company (lender to you on your home loan.)
Then both you and the mortgage company have to endorse the check. The mortgage company then deposits the check, but here is the catch: they release the money in 3rds to you in order for you to pay the contractors. That means, in a neighborhood with 100’s of claims, the contractor has to front thousands of dollars to his customers in materials and labor costs. That puts him at risk of going bankrupt.
This is just simply not right. When you signed up for insurance and they accepted your money, there was no such provision in the policy. The same story/condition is true with the mortgage company and you signing the lending agreement. Both are making off the cuff decisions (not stated in a contract), that in my mind are illegal, and you are suffering the consequences (through prolonged repairs) as is the contractor doing the repair work.
This situation needs to be rectified through a massive ground swell campaign and legislative changes.
We all need to be part of the change!