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Homeowners’ Insurance Loss Draft Check Fees Lawsuit Investigation

PRACTICE AREAS: Consumer Protection
CASE STATUS: Under Investigation

Step 1: Have you submitted a claim to your homeowners’ insurance for more than $10,000 in damages?

Step 2: Did your bank require property inspections to verify the repairs before giving you the insurance money to pay for your property repairs?

Step 3: If you answered “yes” to the first two questions, please fill out the form on this page. You may be able to file a class action lawsuit.

If you submitted a claim to your homeowners’ insurance for more than $10,000, were required to have your property inspected before receiving your insurance money, and are interested in discussing a possible case, please contact E. Michelle Drake at or (612) 594-5933.

About the case

Berger Montague is investigating the possibility that some homeowners are being charged for bank-required inspections after submitting claims for property damage. Homeowners might not know they’re being charged inspection fees, as we believe the money is being taken out of their insurance loss draft checks or escrow accounts.

What does the term “insurance loss draft check” mean?

An insurance loss draft check is a check issued jointly to a homeowner and their bank to repair property damage after a natural disaster such as a fire, flood, or hurricane. Homeowners must submit a claim to their homeowners’ insurance in order to receive a loss draft check. When homeowners submit insurance claims for more than $10,000, many large banks will require periodic inspections before the bank agrees to release the funds.

What happens during a loss draft inspection?

During a loss draft inspection, homeowners must allow an inspector to review the repairs being done to their property. These inspections are required by banks to confirm that the damage reported in homeowners’ insurance claims is actually being repaired. Homeowners must allow their property to be inspected in order to receive their loss draft check.

We believe some banks are docking homeowners’ insurance checks to pay for these inspections, or deducting the fees from their escrow accounts.  We suspect this practice may violate homeowners’ mortgage agreements. In most cases, homeowners don’t realize they’re being charged for these inspections, since the banks are deducting the inspection fees before distributing the insurance money.

If you have received a loss draft check for more than $10,000 in damage, you may have been charged these inspection fees. Please fill out the contact form on this page to get in touch with an attorney who can help.

Do I have to pay to consult with an attorney?

We are happy to talk with you about your potential claims free of charge. If we decide to represent you in a lawsuit, we will enter into a written contingent fee agreement with you. A contingent fee agreement means we only get paid if we win, and that we will receive our fees from the amount paid by the Defendant in the case.


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