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Can I use the money paid out by my home insurance company for remodeling projects that are unrelated to the original claim?
I got some money from my carrier to fix up my garage. Can I use this money to spruce up other parts of my home, like my kitchen or guest bedroom?
Shannon Martin · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
You should first use the money from the claim to make the home repairs for the losses that were reported to the carrier. You should also carefully review the terms of your policy for specifics on what your insurance company may require in the event of a covered loss. The carrier may ask for receipts or other proof showing that the work was completed. If you have a mortgage on the property, your lender may also require you to restore the home to its pre-loss condition.
Generally, as long as you have abided by the terms of your insurance policy and the agreement with your lender, once the repairs are completed, if there is any money left over it is yours to keep and do with as you wish!
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- Gregory R.
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