Receiving an insurance settlement check can feel like the finish line after a stressful claim process. For many homeowners, it signals relief—the damage was acknowledged, and help has arrived. But in reality, receiving the check is not the end of the claim. What you do next can determine whether your property is fully restored or whether you end up paying thousands out of pocket.

This guide explains exactly what to do—and what not to do—after an insurance settlement check arrives, so you don’t accidentally give up money or rights you’re still entitled to.

Step 1: Don’t Assume the Claim Is Final

One of the biggest misconceptions is that once a check arrives, the claim is closed. In most cases, it’s not.

Insurance companies often issue an initial or partial settlement based on preliminary estimates. Additional payments may still be available for:

Missed damage

Code upgrades

Material price increases

Supplemental repairs discovered later

Cashing the check does not automatically mean you agree that the amount is correct.

Step 2: Read the Check and Accompanying Letter Carefully

Before endorsing anything, look closely at:

The memo line on the check

Any release or settlement language

Whether the check says “final,” “full,” or “undisputed”

If there’s language you don’t understand, pause. Some endorsements or documents can limit your ability to seek additional funds later.

Step 3: Confirm Who the Check Is Made Out To

Settlement checks may include:

Your name

Your mortgage lender

A contractor

Multiple parties

If your lender is listed, you’ll likely need their endorsement before funds can be used. This process can take time, so plan ahead to avoid repair delays.

Step 4: Compare the Settlement to the Full Scope of Damage

Now is the time to review:

The insurance estimate line by line

Photos from the inspection

Any contractor assessments you’ve received

Look for:

Missing rooms or areas

Incomplete repair methods

Low material or labor pricing

Excluded demolition, cleanup, or permits

A check can arrive even when the estimate is incomplete.

Step 5: Get a Detailed Contractor Estimate Before Spending

Before starting repairs:

Obtain a written, itemized estimate from a qualified contractor

Ensure it reflects current pricing and proper repair methods

If the contractor’s scope is higher than the insurance settlement, that difference usually indicates missing or underpaid items—not a contractor problem.

Step 6: Understand Depreciation and Holdbacks

Many policies pay in stages:

Actual Cash Value (ACV) upfront

Recoverable Depreciation after repairs are completed

Know:

How much depreciation was withheld

What proof is required to recover it

The deadline for submitting documentation

Failing to recover depreciation can leave money unclaimed.

Step 7: Don’t Rush to Sign Releases or Waivers

Some insurers may ask you to sign:

Proof of loss forms

Settlement agreements

Claim closure documents

Never sign anything stating the claim is complete unless:

All repairs are fully scoped

Costs are confirmed

No additional damage is expected

Once signed, reopening the claim can be difficult or impossible.

Step 8: Document Everything Before Repairs Begin

Take photos and videos of:

All damaged areas

Materials before removal

Hidden damage as it’s discovered

Keep:

Receipts

Invoices

Contractor change orders

Communication with the insurer

Documentation is critical if supplements or disputes arise.

Step 9: Request a Supplement If Needed

If additional damage or costs are discovered:

Notify the insurer immediately

Submit a supplemental claim with documentation

Do not pay out of pocket without challenging the estimate

Supplements are normal in construction-related claims and do not mean you’re doing something wrong.

Step 10: Know When to Get Professional Help

If you encounter:

Large discrepancies

Repeated denials

Delays or poor communication

Confusing policy explanations

It may be time to consult a public adjuster or insurance claim professional. They work on your behalf to ensure the settlement aligns with your policy—not the insurer’s convenience.