The way property claims insurance works is this:
The insurance will send an adjuster or appraiser out to look at the property or "loss" and assess for damages, the adjuster will then write an Estimate of damages. This estimate will have an RCV column that indicates the insurance companies opinion of what it should cost to repair your roof. If your insurance company used the current price list (market value) and didn't overlook anything then no contractor should charge more than that estimated amount. If the contractor charges less than that amount then the insurance company keeps the difference. The policy language that allows them to do so is written as such.. "we will pay to repair or replace damaged property in the amount up to the estimate of damages, or what the contractor agrees to, whichever is less". Most insurance companies "hold back" a portion of the claim in the form of depreciation, that has to be invoiced for by you or your contractor in order to receive the full amount of the claim. If the contractor agrees to charge you less and send an invoice to your insurance company for the full amount they are committing insurance fraud and by proxy so are you.. It makes little difference to some contractors as if they get caught it is only a slap on the wrist, , however if they get caught so does the homeowner and in most cases it is a felony charge to the homeowner.
The mortgage holder then takes their stance:
In this case Bank of America is the mortgage holder and as such are entitled to hold the funds to insure that the work is completed by the property owner as is in the best interest of the property. Typically if you present a contractor who agrees to do all the work as outlined in the "scope of loss" or estimate provided by the insurance company for what the insurance company says it is valued at, you will be able to recoup all of your funds from the bank. If you are not in arrears on your note and are able to get all your work completed for an amount less than what the bank is holding and it passes BofA's inspection then you should be able to recoup any remaining monies if there are any. Bank of America is a "National" bank and therefore governed differently in most states than other mortgage companies. If you feel that the bank is unjustly holding funds that are yours and you do not want applied to the balance on your mortgage send an email clearly delineating your stance and outlining what the scope of damages is, if you have all the work done and any remaining funds you feel they are holding but should send to you. Include your mortgage number and good contact information. If you have work you are going to do yourself that is not done, include that and remember just because you are doing your own work does not mean you don't get paid the same a contractor would get paid for said work. Your time and labor are just as valuable as theirs.