Buyer wants insurance money

What is the name of your state? Ohio

Virtually every house on my street has a new roof due to Hail damage this spring. After I entered into a contract with the buyer of my home, I told them that I would contact my insurance company to look at the roof. I told the buyer that if the insurance company was willing to put a new roof I would put it on. The buyers inspector asked me to replace one shingle on the roof.

Three days before closing the insurance agent called and said that they would not only give us money for a new roof, but they would also give us money to replace the siding.

I called the buyer and told they that they would not only get a new roof but also new siding. They buyers realtor insists that the money should be turned over to the buyer.

I am willing to put on a new roof and siding, but would like to keep whatever additional funds are left over.

Advice?
Eric

[HomeGuru]

Originally posted by Bigking
What is the name of your state? Ohio

Virtually every house on my street has a new roof due to Hail damage this spring. After I entered into a contract with the buyer of my home, I told them that I would contact my insurance company to look at the roof. I told the buyer that if the insurance company was willing to put a new roof I would put it on. The buyers inspector asked me to replace one shingle on the roof.

Three days before closing the insurance agent called and said that they would not only give us money for a new roof, but they would also give us money to replace the siding.

I called the buyer and told they that they would not only get a new roof but also new siding. They buyers realtor insists that the money should be turned over to the buyer.

I am willing to put on a new roof and siding, but would like to keep whatever additional funds are left over.

Advice?
Eric

**A: has closing occurred already? What is the breakdown of $$ for the roof and siding and how much is left over? Did you already contract with licensed and reputable roofing and siding contractors to do the work?

[Bigfoot]

Although you are selling, you may want to find out from your property insurance carrier if you, as the claimant, or the new property owner, can expect to pay higher premiums in the future because of the claim.

[HomeGuru]

[quote]Originally posted by HomeGuru
[b]**A: has closing occurred already? What is the breakdown of $$ for the roof and siding and how much is left over? Did you already contract with licensed and reputable roofing and siding contractors to do the work? Has the work already been completed?

Yes. I have already closed on the house. The insurance company did not give me a breakdown on how the funds were to be used.

I have not contacted a contractor yet.

Lets just say that I will end up with enough cash in my pocket to pay for the new Air Conditioner that I put in for the buyer. Again, something I offered because I knew it was on its last legs.

[HomeGuru]

What was in your contract with respect to the roof and siding repair/replacement?

No. This was a verbal offer by me outside of the contract.

The only mention of the roof in the contract was "a" shingle that the buyer wanted replaced after the inspection.

[HomeGuru]

Originally posted by Bigking
No. This was a verbal offer by me outside of the contract.

The only mention of the roof in the contract was "a" shingle that the buyer wanted replaced after the inspection.

**A: then you are not obligated to give the Buyer the cash overage.