After a hurricane or tornado you file an insurance claim. When the insurance settlement is made the check will be made payable to all parties on the declarations page of your homeowners policy. This means any people and mortgage companies listed on the policy will be all issued checks for building damages.
You will not be able to cash the insurance check until it is endorsed by the mortgage company first. Do not worry if you do not have a local bank.
Call the 800 number on the mortgage statement and listen for prompts regarding an insurance proceeds check. The mortgage company will inform you about the process they have to cash the check.
Most always the mortgage company will mail you a packet of information that reviews their step by step process. The process varies by company.
Sometimes the mortgage company will tell you to endorse the check and mail it to them, sometimes they ask you to mail the non-notarized check to them, they sign it and mail it back. Many times the mortgage company will release a partial payment then release the remainder as the work gets completed.
If the banks have a local presence they may be able to cash some of the checks for you up to a limit, such as five or ten thousand dollars.
This can be a very frustrating process for the homeowner who just wants to get the repairs made. It does make the process longer but ultimately they have the same interest as you do, to make sure the investment is protected.
Most reputable contractors know this is part of the process with any insurance claim. They will help you work through it. Most likely the mortgage company will request a copy of the adjuster report and a copy of the signed contract with your contractor.
This entire process can be lengthy, it is best to make sure you get your roof tarped and board up anything necessary so it gives you time to go through the process without threat of additional damages.