The 44-Day Property Damage Insurance Check Delay: Root Causes and Solutions

Introduction: The 44-Day Reality of Property Damage Insurance Settlements

Talk to claims managers, restoration contractors, or mortgage servicing teams in 2025, and you’ll hear the same story: property damage and insurance checks are taking longer to reach the people who actually need the money.

According to the latest J.D. Power 2025 U.S. Property Claims Satisfaction Study, the average property claim now stretches to about 32.4 days, with many final payments not landing in customers’ hands until 44+ days after first notice of loss. That lag is not just an inconvenience; it creates real cash flow strain for homeowners, contractors, and the insurance, real estate, and title professionals who are trying to move transactions forward.

This guide unpacks why that 44‑day number keeps showing up, where delays most often occur, and how professionals across the ecosystem can realistically shorten the timeline without cutting regulatory corners.

Why 44+ Days? The Anatomy of Insurance Claim Delays

How the modern property claim timeline really unfolds

The J.D. Power research highlights that the property claim journey has become more complex, not less, even as digital tools proliferate.[1] Insurers have improved elements like digital FNOL (first notice of loss), but downstream steps—inspection, scope agreement, payment authorization, and check disbursement—continue to create friction.[1]

Several converging trends are extending timelines:

• More severe and frequent weather events are generating higher claim volumes, which strains adjuster capacity and back-office processing.[2]

• Higher construction and repair costs, driven by tariffs, materials volatility, and labor shortages, increase the number of files that require senior-level review or reinspection before payment is released.[2]

• Coverage changes and higher deductibles are creating more billing questions and disputes that must be resolved before checks are cut.[3]

Recent analysis from Sedgwick, summarized by Risk & Insurance, notes that property claims departments are facing a “perfect storm” of climate-related losses, inflationary repair costs, and organizational change, all of which put pressure on cycle times.[2]

Where days are lost inside the claim

Even when an insurer is operating efficiently, time accumulates at each stage. Based on industry analysis and satisfaction research, the biggest drivers of delay include:[1][2]

• Scheduling and completing inspections, especially after catastrophes.

• Back-and-forth over scope of damage and contractor estimates.

• Internal approvals for larger or complex losses.

• Coordination of multi-party payments involving mortgage companies and sometimes multiple insureds.

• Manual, paper-based property damage and insurance checks that require printing, mailing, endorsement, and re-deposit.

Policyholders tend to experience this as “nothing is happening,” even when work is progressing behind the scenes—one of the reasons J.D. Power finds that communication clarity is now as important to satisfaction as raw speed.[1]

Typical delay drivers in a single claim

The following table summarizes common delay sources once coverage has been accepted:

The Mortgage Company Factor: How Lenders Hold Up Settlements

Why the mortgage company is on the insurance check

For many homeowners, confusion starts the moment they see that their property damage and insurance check is made out to both them and their mortgage company. Consumer guidance from the (5) explains why: the lender has a financial interest in the property and is typically named as mortgagee on the policy, so insurers are contractually obligated to include them on significant claim payments.

State-level educational materials, such as the South Carolina Department of Insurance’s guide on the claim payout process, reinforce that proceeds may be:

• Paid directly to the homeowner.

• Paid jointly to homeowner and mortgage company.

• Paid in stages, with funds held in an escrow-like account and released as repairs progress.[4]

How long can a mortgage company hold an insurance check?

A recurring complaint in industry forums and homeowner advocacy sites is that servicers sit on checks for weeks or months. Legal analysis from property insurance coverage attorneys notes that while lenders have the right to protect their collateral, state law and loan documents often require “reasonable” or defined timelines for:

• Acknowledging receipt of the check.

• Releasing funds for verified repairs.

• Providing explanations when funds are withheld.[7]

The problem is that “reasonable” can be interpreted flexibly unless statutes or regulations specify exact deadlines. The result: even after the insurer has paid, funds may still be tied up in mortgage company workflows, inspections, and document reviews.[5][7]

Multi-party checks: operational headaches for professionals

For insurance carriers, real estate brokerages, restoration contractors, and public adjusters, multi-party checks create additional friction:

• Checks must be mailed or overnighted to the mortgage company.

• Lenders may require detailed contractor information, W‑9s, licenses, and signed repair contracts before releasing any portion.[4][7]

• Disbursements might only be made after inspections at specific completion milestones.

This is where delays shift from pure “claims” issues to a broader payment operations challenge. Even when everyone agrees on the amount, the process of getting money from insurer to mortgage company to contractor can easily add one to two weeks.

State Regulations and Compliance Requirements in 2026

What regulators say about claim payments

State insurance departments publish consumer-facing guidance that often serves as a baseline for professional best practice. The South Carolina Department of Insurance, for example, explains that insurers may:

• Issue multiple checks over time for a single loss.

• Make checks payable to both the insured and the mortgagee.

• Require proof that repairs are completed before issuing final payments.[4]

Many states also set expectations for prompt claim handling, such as deadlines to acknowledge a claim, investigate, and either pay or deny. While specifics vary, these standards influence how quickly insurers must move through the early stages of a property damage claim.

Mortgage servicer obligations

On the lending side, obligations are shaped by a combination of:

• State property and consumer protection laws.

• Federal servicing guidelines and investor requirements.

• The mortgage contract itself.

Legal commentary on mortgage-held insurance proceeds emphasizes that servicers generally must:

• Hold funds in segregated or properly accounted-for accounts.

• Use funds to restore the property or apply them consistent with loan terms.

• Release funds in a manner that is not arbitrary or punitive to the borrower.[7]

Delays often arise not from intentional obstruction but from documentation and inspection requirements that servicers feel compelled to enforce in order to stay compliant.

How this shows up for industry professionals

For insurance, real estate, and title professionals, the regulatory picture creates three practical imperatives:

1. Align with state claim handling rules to avoid accusations of untimely payment.

2. Coordinate early with mortgage servicers so everyone understands disbursement rules before checks are issued.

3. Document all communications and approvals, which becomes crucial if a borrower later alleges wrongful withholding of funds.

The Documentation Bottleneck: Why Paperwork Delays Matter

The paperwork layer in property damage and insurance checks

Every step in the property damage claim journey is document-heavy:

• Photos, videos, and written descriptions of damage.

• Contractor estimates and revised estimates.

• Insurance company scopes of work and settlement letters.

• Mortgage company forms, affidavits, and inspection reports.[4][5][9]

Restoration and claims best-practices guidance consistently stresses that incomplete or disorganized documentation is one of the most common sources of delay in getting claims approved and paid.[9] When a file bounces between teams because a form is missing or a signature is unclear, days are lost.

Where documentation stalls the process

Common friction points include:[4][5][7][9]

• Missing contractor licenses or W‑9s required by lenders.

• Discrepancies between contractor estimates and adjuster scopes.

• Insufficient evidence that repairs are progressing, delaying staged disbursements.

• Policyholders not understanding what documents are needed, or where to send them.

R&R Magazine’s guide to navigating insurance claims urges restoration vendors to take a proactive role in compiling, organizing, and sharing documentation—both with carriers and with mortgage companies—to keep files moving.[9]

How documentation issues show up in timelines

The following table illustrates how document-related issues can compound delays once an insurer is ready to pay:

Digital Payment Solutions: The Path to Faster Settlements

Why paper checks are still slowing everything down

Even as insurers digitize FNOL and communication, many still rely heavily on paper checks for property damage payouts. Industry payment experts note that paper checks introduce multiple friction points:[8]

• Printing and mailing time.

• Lost, damaged, or misrouted mail.

• The need for endorsement by multiple parties.

• Re-deposit delays and holds at financial institutions.

Analysis of digital-first claim payment models shows that shifting to electronic methods can cut payment processing costs by 60–80% while also improving the customer experience.[8] That cost reduction is important for carriers, but for policyholders and professionals it is the time savings that matters most.

How digital payments change the 44-day equation

Recent analysis of claims operations and payment modernization outlines several key advantages of digital disbursements in the claims context:[2][6][8]

• Same-day or near-real-time delivery once a payment is approved.

• Improved visibility and tracking across insurers, mortgage companies, and contractors.

• Reduced manual handling and rekeying errors.

• Easier reconciliation for accounting and audit purposes.

This is exactly why services like Bankshot exist—to give insurers, real estate brokerages, title companies, and property managers a secure way to move high-liability funds without adding days of check handling and back-and-forth. Bankshot focuses on scenarios where large-dollar check payments and disbursements are common and timing-sensitive, such as earnest money deposits, commissions, and disbursements tied to property-related transactions.[3][4]

Comparative view: paper vs. digital in claim payments

Staged Disbursements and Inspection Requirements

Why funds are often paid in stages

Both the CFPB and state insurance departments explain that, especially in significant property damage cases, insurers and mortgage companies often use staged or phased disbursements.[4][5]

Common structures include:[4][5][7]

• An initial payment to start emergency work and mitigation.

• One or more mid-project draws as repairs progress.

• A final payment once repairs are fully completed and inspected.

From a risk perspective, staged disbursements make sense: they encourage proper completion of work and protect the lender’s collateral. But they also introduce multiple points where approvals, inspections, and documentation must be processed.

The role of inspections

Mortgage company and insurer inspection protocols typically aim to verify:[4][5][7]

• That work is being performed by the contracted party.

• That repairs meet basic quality and completion standards.

• That funds are being used to restore the property, not for unrelated expenses.

Inspection scheduling, particularly in high-volume or catastrophe scenarios, can become a major bottleneck.

How staged disbursements impact professionals

For contractors, public adjusters, and restoration vendors, understanding a lender’s specific staged disbursement rules is critical to cash flow. Best-practice guidance for navigating insurance claims recommends:[9]

• Clarifying the draw schedule with both the insurer and the mortgage servicer before work starts.

• Aligning invoices and documentation with those milestones.

• Communicating expected inspection dates and requirements to property owners.

A clear, shared plan helps prevent situations where work is 80% complete but funds are only 40% released.

Industry Disruptions in 2026: Climate, Costs, and Capacity

Climate and catastrophe trends

Industry analysis in 2025 points to sustained or rising catastrophe activity, which translates directly into higher property claim volumes.[2] This drives:

• More concurrent claims per adjuster.

• Greater reliance on independent adjusters and virtual inspections.

• Longer queues for both inspections and payment approvals.

Sedgwick’s outlook, reported by Risk & Insurance, emphasizes that the sector is in “major disruption” as insurers adapt their claims operations to deal with these pressures.[2]

Inflation, materials, and labor

Commercial and residential property repair costs have been under intense inflationary pressure. Claims Journal reporting on commercial property claims notes:

• Rising reconstruction costs due to materials inflation and supply chain volatility.

• Persistent skilled labor shortages.

• Increased use of managed repair or preferred vendor networks to control quality and costs.

At the homeowner level, the Matic 2025 Home Insurance Report (3) documents rising premiums and higher deductibles, particularly in catastrophe-exposed states. This dynamic can lead to more underinsurance, higher out-of-pocket costs, and coverage disputes, all of which may slow settlement.

Capacity and technology transformation

These disruptions are pushing insurers and claims organizations toward AI, automation, and digital tools for triage, fraud detection, and workflow management.[2] However, large-scale transformation itself can temporarily create friction as systems are integrated and staff adapt to new processes.

Best Practices for Accelerating Your Claim Settlement

For insurers and claims organizations

Drawing on satisfaction research and claims best-practice guidance, several approaches consistently improve both speed and experience:[1][2][8][9]

1. Set clear expectations early.Explain likely timelines, staged payments, and mortgage company involvement at FNOL.

2. Invest in proactive communication J.D. Power data shows that communication quality strongly correlates with satisfaction even when cycle times are longer.[1]

3. Simplify documentation requests.Provide concise checklists to policyholders and contractors with exactly what’s needed for each stage.[4][5][9]

4. Modernize payment rails. Moving from paper checks to digital disbursements shortens the gap between “approved” and “received.”[8]

For mortgage servicers and lender-related teams

Legal and regulatory guidance suggests that servicers can reduce friction by:[5][7]

• Publishing transparent, easy-to-find insurance proceeds procedures.

• Offering digital upload of required documents and inspection reports.

• Coordinating with insurers on electronic payments and clear reference data to simplify reconciliation.

For mortgage companies that partner with specialized payment platforms, there is an opportunity to handle large insurance-related checks in a way that is both compliant and significantly faster than legacy, paper-based workflows.

For real estate, title, and restoration professionals

Restoration and property-transaction professionals can materially influence timelines by:[4][5][6][9]

• Getting involved early in the claim to align scopes and expectations.

• Maintaining meticulous, organized documentation of work performed.

• Educating clients about multi-party checks and mortgage company roles.

• Encouraging or partnering with organizations that support secure digital payment options, especially when disbursing funds to multiple stakeholders.

This is an area where specialized providers, including Bankshot, can support smoother closings and settlements by handling complex disbursement scenarios with more automation, tracking, and control than ad hoc manual check processes.[3][4]

The Future of Property Damage Claims: AI, Automation, and Innovation

How AI is reshaping claim assessment

Industry reports on 2025 claims disruption highlight growing use of AI for damage assessment, fraud detection, and workflow routing.[2] These tools aim to:

• Accelerate triage and initial coverage decisions.

• Prioritize higher-severity or vulnerable-customer claims.

• Reduce manual review for straightforward losses.

When implemented effectively, AI can shorten the front end of the claim, which then puts more spotlight on payment and disbursement processes as the remaining bottleneck.

Digital-first payments as a competitive differentiator

Payment-focused research argues that insurers can no longer treat payments as an afterthought. Policyholders increasingly compare their claim experience to the speed and transparency of other digital services.

Key differentiators going forward include:[2][6][8]

• Real-time payment status and notifications.

• Options for multiple digital payout methods while still supporting compliance and mortgagee interests.

• Integrated workflows that bring together insurer, lender, and vendor data.

Forward-thinking companies, including Bankshot, are building platforms that manage the entire payment lifecycle —from receiving large checks and deposits to orchestrating compliant disbursements to multiple parties.

Where professionals can prepare now

For insurance, real estate, and title professionals, preparing for this future means:

• Auditing current property damage and insurance check processes to identify manual steps that could be digitized.

• Establishing relationships with digital payment partners that understand high-liability, multi-party real estate and claims funds.

• Training teams on evolving regulatory and lender requirements so that faster payments never come at the expense of compliance.

The organizations that close the gap between claim approval and usable funds will likely see higher satisfaction, fewer disputes, and better operational margins.

Conclusion: Navigating the 44-Day Reality and Moving Forward

The emerging 44‑day benchmark for property damage claim payments is not the result of a single failure point. It is the accumulation of inspection backlogs, documentation gaps, mortgage company procedures, and paper-based payment workflows across multiple organizations.

The good news is that each of those layers also represents an opportunity for improvement. By tightening documentation practices, clarifying staged disbursements, modernizing payment methods, and coordinating more closely with mortgage servicers, professionals across insurance, real estate, and title can materially reduce settlement times while maintaining regulatory and contractual safeguards.

This is exactly why services like Bankshot exist—to give the industry a secure, compliant way to move high-value, multi-party funds faster, with better tracking and control. As AI and automation continue to streamline claims decisioning, the organizations that modernize how they handle property damage and insurance checks will be the ones that turn today’s 44‑day reality into a much shorter—and far more predictable—timeline.

References

1. J.D. Power – 2025 U.S. Property Claims Satisfaction Study

2. Risk & Insurance – Property Claims Management Faces Major Disruptions in 2025

3. Matic – 2025 Home Insurance Trends Report

4. South Carolina Department of Insurance – Understanding the Claim Payout Process

5. Consumer Financial Protection Bureau – How do home insurance companies pay out claims?

6. Bankshot – Mortgage Company Insurance Claim Checks: 2025 Trends, Regulations & Digital Solutions

7. Property Insurance Coverage Law – How Long Can a Mortgage Company Hold Insurance Check?

8. One Inc – Why Insurers Can’t Wait for Digital-First Payments

9. R&R Magazine – Navigating Insurance Claims: Best Practices

10. Claims Journal – Commercial Property Claims in 2025: Repair Costs, Timeliness and Beyond