What Is an Escrow Draw Request for Restoration Funds?

An escrow account holds money set aside for property expenses, often for taxes or insurance. After water damage, your lender may allow you to draw from that account to pay for restoration. You or the pros submit a request that outlines the scope of work and the estimated costs.

The lender or escrow agent checks the request to confirm the funds are used for legitimate repairs. They may ask for documentation like photos, invoices, or a written scope from the pros. Once approved, the funds are released, either to you or directly to the service provider.

• Submit a detailed scope of work from the pros
• Include photos or inspection reports if requested
• Provide cost estimates or invoices for materials and labor
• Expect the lender to verify the damage and repairs
• Funds may be paid in stages as work progresses

Your draw request should clearly describe the damage and the planned restoration work. Include the property address, the date of loss, and a breakdown of costs. The pros often provide a written estimate that you can attach to the request.

You may also need to show that the work is necessary, such as a water damage inspection report. Some lenders require a signed contract with the restoration service. Check with your lender for their specific forms and requirements before submitting.

• Property address and date of damage
• Detailed scope of work from the pros
• Cost breakdown for materials, labor, and equipment
• Photos or inspection reports as evidence
• Any required lender forms or disclosures

Start the draw request as soon as you know restoration is needed. Delays can slow your repairs and extend the time your home is exposed to moisture. Keep copies of every document you submit and any correspondence with the lender.

If your claim involves insurance, note that policies vary, and your insurer decides what is covered. The escrow draw is a separate process from your insurance claim, but both may require documentation. Stay organized to avoid confusion between the two.