An insured-loss repair inspection documents progress or completion of property repairs before a mortgage servicer releases additional claim funds.
An insured-loss repair inspection is a review used to document the progress or completion of repairs funded by property-insurance proceeds on a mortgaged home.
The inspection matters because a servicer may be holding part of the structural claim payment and need evidence that work reached the required stage before releasing more money. The inspection connects the physical repair project to the servicing-side draw schedule.
It is usually narrower than a purchase appraisal or full home inspection. Its central question is whether the identified loss repairs are complete to the reported stage, not whether the home’s market value supports a new loan or whether every system in the property is defect-free.
An inspection result may support a draw, but it does not by itself decide insurance coverage, resolve a contractor dispute, or guarantee that every repair satisfies all legal and policy requirements.
Borrowers encounter this inspection after an insured loss when the servicer is monitoring repairs and holding money in an Insurance Repair Escrow.
The Loss Draft Department may arrange an on-site or permitted remote review after the borrower requests a Repair Draw. The inspector records the property’s identity, visible repair status, and completion estimate or other required observations. The servicer then uses the report with the rest of the draw documents.
| The inspection may | The inspection usually does not |
|---|---|
| Confirm the property and reported repair areas | Re-underwrite the mortgage |
| Estimate how much listed work is complete | Settle the insurance claim coverage decision |
| Document visible progress with notes or images | Replace permits, contractor invoices, or lien releases |
| Support a progress or final draw review | Guarantee workmanship or future performance |
The actual inspection scope depends on the servicer’s process and the nature of the loss.
The inspector’s report is only one part of the file. The borrower may also be asked for the contractor’s current invoice, photographs, a repair estimate, permits, completion forms, or lien releases. Those documents identify what was authorized and paid, while the inspection records visible progress at the property.
Keeping those roles separate helps explain why a successful site visit may not produce an immediate draw if another required document is still missing.
A borrower requests the next draw after a damaged roof and interior have been substantially repaired. An inspector documents that the roof is complete and the interior work is about three-quarters finished. The servicer reviews that report before deciding how much of the held proceeds to release.
An insured-loss repair inspection differs from an Appraisal because an appraisal develops an opinion of value for lending purposes. The repair inspection documents work tied to an insurance-loss project.
It differs from an Appraisal Reinspection because an appraisal reinspection revisits property conditions identified in an appraisal assignment. An insured-loss inspection supports claim-fund monitoring after damage.
It also differs from a Repair Draw. The inspection is evidence of progress; the draw is the release of money that may follow.