RUSKIN, Fla. — A Hillsborough County couple says Chase Bank held nearly $100,000 of their flood insurance payout for more than a year while they struggled to rebuild their Ruskin home after Hurricane Helene. Left waiting, the couple said they had to withdraw money from their retirement savings to keep construction going.
Chris and Analia DeHayes lost their home two years ago when it flooded during Hurricane Helene. Since the damage was entirely water-related, they could only collect from the National Flood Insurance Program, which caps payouts at $250,000. The DeHayes received close to that limit, but because they carry a mortgage, the check was made out to both them and their lender, Chase Bank.
The couple said Chase released $141,000 but withheld nearly $100,000.
"Chase has made this an absolute nightmare," Chris DeHayes said.
Construction is well underway on their home, which is costing them more because it had to be elevated under FEMA's 50 percent rule.
"We've had to even cash in part of our 401k to keep the building process going," Chris DeHayes said. “We have taken almost a quarter million out of that fund."
Chris DeHayes said he’s now on the hook to pay income tax on those funds because he’d been hoping to receive the check from Chase, which he could use to reinvest in the fund and prevent tens of thousands of dollars in taxes.
The DeHayes also applied and were granted a loan from the Small Business Administration, but said they are required to receive the full insurance payout before they can access those funds to rebuild their home.
The couple explained that Chase repeatedly requests and cancels scheduled inspections, which is a required step before releasing additional funds. The couple also said the documentation demands were relentless.
"Then they'll ask for a document. There have been over 90 documents submitted to this company attempting to get them to pay out," Chris DeHayes said.
After Tampa Bay 28 Consumer Investigative Reporter Susan El Khoury emailed Chase, a spokesperson requested a phone call. That same day, Chase conducted a virtual inspection with the DeHayes.
Attorney David Murray, who has handled insurance cases for more than two decades, said there are no laws or rules in Florida requiring inspections within a set timeframe.
"Florida, unfortunately, is way behind in the consumer protections that it needs to have in place," Murray said.
Murray also explained that many mortgage agreements are vague about how lenders must handle insurance payouts, and some even include language giving the lender the authority to decide whether a home should be rebuilt.
"That's not a very good consumer-friendly type of process because then the banks are going to do things that benefit them more than the consumer," Murray added.
Murray noted that lenders can also earn interest on insurance funds they hold while simultaneously charging the homeowner interest on the original mortgage balance.
"They're benefiting two ways," Murray said.
After the phone call with Chase, the company sent Tampa Bay 28 a statement: "We are pleased to share that our customer's recent inspection showed significant progress, and the remaining funds to continue rebuilding their home will be sent."
Shortly after, the DeHayes received a check for nearly $100,000.
"Bless you for everything you've done. Thank you so much because it worked," Chris DeHayes said.
"I feel so excited that we can actually see the light at the end of the tunnel," Analia DeHayes added.
As another hurricane season approaches, homeowners with a mortgage should know that if they suffer a loss, their insurance check may be written to both them and their lender. However, the lender's interest cannot exceed what is still owed on the home. If that situation arises, homeowners can ask their insurance company to reissue the check.
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