At Professional Home Buyers, one of the most common questions we hear from homeowners is, “Can I sell my house with an open insurance claim?” You don’t necessarily have to apply the funds from property damage claims to repairs. But what happens if you choose to sell your home before the insurers issue a claim payout?
Learn more about your options and what selling with an open insurance claim means for you.
Disclose Key Information to the Appropriate Parties
Moving forward with the home sale process requires thorough communication between you, your insurance company, and prospective buyers. There are legal disclosure requirements when selling a home before an insurance settlement becomes final. Make sure you:
- Tell the insurance company that you intend to sell the property.
- Inform potential buyers of existing property damage requiring repairs.
- Notify buyers of the open claim.
Keeping these parties in the dark may complicate the process. If you’re hoping for a straightforward, timely sale, don’t skip this crucial step.
Decide What To Do With the Insurance Benefits
Are you wondering, “How can I sell my house with an open insurance claim?” There are typically two options for sellers in this situation. You can either choose to retain the funds from an insurance settlement or permit the home’s buyer to receive the benefits.
You’re within your rights to receive an insurance payout and then sell your house without making any repairs. However, you’ll likely need to sell the house for less. Property damage claims are often paid out to cover the costs of repairs and restoration.
If you take the money but then sell your house without making repairs, buyers have to pay for them. Experts recommend determining the cost of repairs and reducing the home’s sale price by that amount. Document the exact price reduction in official transaction forms for full transparency.
You may also transfer the benefits to a buyer so they receive the insurance settlement and can put it towards the necessary repairs. Contact your insurer to make sure your policy doesn’t include an anti-assignment clause. If it does, transferring the benefits won’t be an option.
Consider Selling to a Cash Buyer
While it’s possible to sell a house with an open insurance claim to a traditional buyer, the process isn’t without its challenges. Alleviate some of the hassles by contacting a cash buyer. Investors like Professional Home Buyers are willing to purchase homes in any condition, so sellers never have to perform repairs.
Get a Fair Cash Offer for Your Home
Can I sell my house with an open insurance claim? Will a recent bankruptcy filing impact my home sale? Is selling a house as-is possible even if it has fire or water damage?
At Professional Home Buyers, we can answer these questions and more. Contact us today if you’re interested in selling your house quickly, and our investors will provide a fast, cash offer to you. Call (316) 202-1628 to get started.