May 30, 2024 Borrower Co-Borrower Street Address City, State, Zip

May 30, 2024

Borrower

Co-Borrower

Street Address

City, State, Zip

Dear Homeowner(s),

RE: Insurance Loss and Claim

Thank you for notifying RI Housing of your recent insurance loss and claim.

The enclosed Insurance Claim Guidelines will provide you with an understanding of our

insurance loss procedures. Please note that these are general guidelines only. RI Housing

may impose additional requirements depending on the nature and extent of the damage and

the status of your mortgage loan. For this reason, we recommend that you review your

mortgage carefully for information relating to insurance losses, especially if it is a total loss.

Also enclosed are other important forms that you and your contractor must complete and

return to our office at the start of the insurance claim process.

RI Housing seeks to make the insurance claim process transparent and easy to understand.

For any additional information please feel free to contact me at (401) 429-1494 or email me

at bbriden@rihousing.com.

Sincerely,

Barbara Briden

Escrow Representative

Enclosures

RI Housing – Insurance Claim Guidelines

For claims under $10,000 (Replacement Cost Value per Insurance Adjuster Estimate):

The following documents must be sent to RI Housing for review:

1. The insurance claim check(s) which are endorsed by all signers.

2. The signed Insurance Loss/Claim Acknowledgement Form, which is included with this packet.

3. The full Insurance Adjuster’s estimate.

4. The Owner’s Property Repair Statement, which is included with this packet.

Upon receipt and review of these documents, RI Housing will endorse the check and return it to you.

**If your loan is greater than 31-days delinquent, the process below will be followed.**

For claims greater than $10,000 (Replacement Cost Value per Insurance Adjuster Estimate):

The following documents need to be provided to RI Housing before the start of work.

1. The insurance claim check(s) which are endorsed by all signers. RI Housing will hold the

insurance loss proceeds in a non-interest bearing, escrow account while your property is being

repaired.

2. The signed Insurance Loss/Claim Acknowledgement Form, which is included with this packet.

3. The full Insurance Adjuster’s estimate.

4. A detailed estimate/proposal submitted by the contractor you have selected. It should include

the activities to be performed, finished materials to be used, for example the type of flooring, the

color, brand, etc., and a total cost of the project. Depending on the extent of the damage, repairs

should be completed within 120 days.

The RI Housing Insurance Claim team will review and approve the estimate. The team may request

further details or ask questions as part of the review process. Once the estimate is approved, the

following documents will need to be provided by you and your contractor.

1. A copy of the signed contract between you and your contractor.

2. A copy of their RI Contractors Registration Card.

3. A copy of the Contractor’s Liability Insurance certificate.

4. A completed W-9 form from the contractor. RI Housing will supply the blank form.

Disbursement & Inspection Procedures

Generally, disbursements are made in increments of one-third of the insurance claims funds in the

escrow account. Funds are disbursed at the start of the project, at project mid-point (50% completion),

and at project completion. RI Housing may allow a different disbursement schedule depending on the

nature and extent of the property damage.

All disbursement checks will be made payable to both the borrower(s) and the contractor, unless you

authorize, in writing, that checks may be payable directly to the contractor. RI Housing prefers dual

payee checks because it is a way of ensuring that you are satisfied that work is being performed to the

expected standards.

Initial disbursement: RI Housing will issue a check for the initial disbursement within 5-7 business

days of the receipt of all required documentation, and the approval of the project.

Second disbursement: When the repair work has reached fifty percent (50%) completion, you must

request the disbursement from the RI Housing Insurance Claims Team. You must include photos of all

the work completed to date. Upon review, RI Housing will send a contractor payment requisition form

(CPR) to be signed by you and your contractor. Once it is returned RI Housing will send out the second

disbursement check. RI Housing may also require a lien waiver to be signed and notarized by your

contractor.

Final Disbursement: When the repair project is completed, you must reach out to request the final

disbursement from the RI Housing Insurance Claims Team. When submitting the request, please send

photos of all completed work and all applicable supporting documentation, for example permits and/or

approvals by city inspectors. Upon review, RI Housing will send a contractor payment requisition form

(CPR) to be signed by you and your contractor. RI Housing will also send a Final Lien waiver to be signed

and notarized by your contractor. Once all documentation is returned, RI Housing will release the final

disbursement within 5 -7 business days. RI Housing reserves the right to come on site to inspect the

work if needed and will work with you to set up a time.

Please note: You will want to ensure that your claims checks are made payable to anyone who is on the

mortgage and Rhode Island Housing. If the checks are not made to the correct payees, then they will

have to be replaced and it will delay the start of your repairs.

Important Information regarding Insurance Claim Adjusters

Your insurance company provides an Independent Insurance Adjuster to assess the damage and

prepare a detailed cost estimate. These services are paid for by your insurance company.

If you initially filed your own claim and are unhappy with your insurer’s settlement offer, you may hire a

Public Adjuster to review the case and negotiate to get you a higher settlement. Please Note: Public

Adjuster Fees are your responsibility and are not included in your Insurance Claim settlement funds.

Funds from your settlement cannot not be used to pay public adjuster fees unless there are surplus

funds available at the end of the project. Also, you should not sign any documents which allow the

Public Adjuster to be included as an endorser on your settlement checks.

All documents that are referenced in these guidelines can be emailed to servicinginfo@rihousing.com

If emailing, please have the words “Insurance Claim” in the subject line. Checks must be delivered or

mailed to the address below.

RI Housing

44 Washington St

Providence, RI 02903

Attn: Escrow – Insurance Claims

Tips for Selecting a Contractor

1. Get Multiple Estimates – Talk to several contractors and get written estimates from at least three.

Compare the estimates and look at specific things on each one, building materials, work methods,

timelines, and other things that may vary by contractor. Be careful of estimates that are either too high or

too low.

2. H

ire Local & Licensed Contractors – Contractors who live and work in your area are easier to contact if

problems develop later and they are more likely to be familiar with local building codes.

3. C

heck Their Past Work – How have projects they completed in the past come out? Do they specialize in

the type of work you need done? Check their references and ask about the quality of their workmanship

and customer service. Check their reputation and business information with the Better Business Bureau.

4. T

ake Your Time Making a Good Decision - Get multiple bids before deciding. Don’t be pressured into

making an immediate decision, particularly about signing a contract. Be cautious when asked to pay a

large deposit up front. Make sure to read the fine print on all estimates and contracts.

5. C

heck Their Insurance - Make sure the contractor is properly insured. Ask the contractor for a certificate

of liability insurance, which should provide the name of the insurance company, policy number and policy

limits the contractor carries. Do not do business with a contractor who does not carry the appropriate

insurance coverage. If the contractor is not insured, you may be liable for accidents that occur on your

property.

6. G

et Everything in Writing - Secure a comprehensive contract before work begins. Get everything in

writing, and make sure the contract is clear and well written. Consider having a lawyer review the

proposed contract for your protection before you sign it if the project involves substantial costs. The

contract should include:

• A detailed description of the work to be completed and the price of each item.

• A payment schedule – for example: one-third down and one-third when work is fifty percent (50%)

completed, and the balance due upon completion of repairs.

• The estimated start date and completion date on larger projects.

• Any applicable guarantees should be written into the contract and clearly state what is

guaranteed, who is responsible for the guarantee, and how long the guarantee is valid.

• Signatures from both parties. You should never sign a contract containing blank sections.

7. Keep a Job File - Keep your contract and all the supporting documents in one folder. Your file should also

contain any change orders, plans and specifications, bills and invoices, canceled checks, and certificates

of insurance and any letters, notes or correspondence with the contractor.

Loss/Claim Acknowledgement

Borrower Name: __________________________________________________________________________________________

Property Address: _________________________________________________________________________________________

Loan Number: ____________________________________________________________________________________________

I (We) acknowledge and agree that:

• The insurance loss proceeds are to be used for the repair/restoration of my (our) property.

• I (We) have read, understand, and agree to abide by the requirements set forth in RI Housing’s Insurance

Loss Guidelines.

• I (We) have read and understand my contractor’s contract/proposal. I (We) understand that I (We) will

financially be responsible for all costs related to the repair work that are not covered by the insurance loss

proceeds that I (We) received from my insurance company.

• I (We) agree to apprise RI Housing of the status of repairs.

• I (We) understand that RI Housing requires progress & completion photos to monitor the progress of the

repairs.

• I (We) understand that RI Housing recommends that I (We) speak with our insurance company to better

understand the Recoverable Depreciation portion (if any) of the Insurance Adjuster’s Report, as these

monies may be claimed after all repairs have been completed and re-inspected.

• I (We) understand that, unless I(We) am/are in bankruptcy or have received a discharge in a bankruptcy

case and did not reaffirm my (our) RI Housing mortgage loan obligation(s) then I (We) must continue to

make my (our) mortgage loan payments throughout the insurance loss process.

My (Our) signatures below acknowledge(s) my (our) intentions to repair/restore the property and agree to notify RI

Housing when the repairs have been completed.

Borrower Signature: _______________________________________________________________________________________

Co-Borrower Signature: ____________________________________________________________________________________

Contact Information for Loss Related Matters

Name:____________________________________________________________________________________________________

E-mail:___________________________________________________________________________________________________

Phone: ___________________________________________________________________________________________________