Insurance claim while home for sale

[Claim4sale]

We recently had hail damage to our home that is currently listed for sale, mostly cosmetic. The adjuster gave us a check for the damage, no coinsured listed or mortgage lender endorsement required. Problem is, this check doesn't come close to covering the entire scope of the damage, costing me a considerable amount out of pocket to repair a home I don't plan to stay in. My plan is to hold the check until closing the sale. My thinking is, if the buyer wants money for repairs we can negotiate with the claim money. If the buyer does not raise repairs as an issue what are my options? Keep the check?

I don't want to do anything illegal but I don't want to throw away money either. Any advice will be greatly appreciated. Thanks!

 

[LdiJ]

We recently had hail damage to our home that is currently listed for sale, mostly cosmetic. The adjuster gave us a check for the damage, no coinsured listed or mortgage lender endorsement required. Problem is, this check doesn't come close to covering the entire scope of the damage, costing me a considerable amount out of pocket to repair a home I don't plan to stay in. My plan is to hold the check until closing the sale. My thinking is, if the buyer wants money for repairs we can negotiate with the claim money. If the buyer does not raise repairs as an issue what are my options? Keep the check?

I don't want to do anything illegal but I don't want to throw away money either. Any advice will be greatly appreciated. Thanks!

Its not illegal to keep the money and not make the repairs...you likely would not get as much for the home however. You would need to disclose the unrepaired damage to any potential buyers, particularly any damage that is not cosmetic.

 

[startedone]

Its your money...do what you wish with it

 

[Zigner]

The only time this might not be correct is if there is a mortgage on the house. In that case, the OP could be contractually required to repair the damage. Of course, it may be a moot point if the house sells and the present lender is paid in full.

 

[ecmst12]

A better question would be, WHY are they not paying for all of the damage? After your deductible, they should pay all reasonable costs for the repair. Do they want you to have the work started before considering more payment based on the needs of the job?

 

[LdiJ]

A better question would be, WHY are they not paying for all of the damage? After your deductible, they should pay all reasonable costs for the repair. Do they want you to have the work started before considering more payment based on the needs of the job?

In some states, depreciation would be a factor. For example, if a roof was 10 years old and the insurance company was paying for hail damage, they might only pay on the depreciated value of the existing roof. Hail damage is one of those things that varies a great deal from state to state.

 

[Claim4sale]

A better question would be, WHY are they not paying for all of the damage? After your deductible, they should pay all reasonable costs for the repair. Do they want you to have the work started before considering more payment based on the needs of the job?

No, insurance factored in some depreciation. Even with deprecition added back the insurance estimate still doesnt come close to the contractors estimates. Two contractors have looked at the roof and my insurance adjusters write up and both claim they can't come close to matching the lowball estimate. Additionally, both contractors believe more work needs to be done than insurance will agree to.

After some research I realize that I can request another adjuster or invoke appraisal but the contractors seem hesitant now. Sound like I'm in for a fight.