Settlement of fire damaged rental house

[coins83]

What is the name of your state? KY

A rental property of mine was damaged by fire this month. I had just evicted my tenants and the property caught on fire in the middle of the night. Liberty Mutual is conducting an ongoing arson investigation, but it appears my name has been cleared. The adjustor estimated the damage at about $55 to $60K. I have a $95K actual cash value policy with a $1000 deduct and loss of rent insurance. I do not have a mortgage. If I decide not to repair and just sell the house, how will this affect my settlement amount? Or can I choose to do most of the repairs myself and subcontract out the remaining repairs? When I receive my settlement check, am I obligated to fix the house?

 

[moburkes]

What is the name of your state? KY

A rental property of mine was damaged by fire this month. I had just evicted my tenants and the property caught on fire in the middle of the night. Liberty Mutual is conducting an ongoing arson investigation, but it appears my name has been cleared. The adjustor estimated the damage at about $55 to $60K. I have a $95K actual cash value policy with a $1000 deduct and loss of rent insurance. I do not have a mortgage. If I decide not to repair and just sell the house, how will this affect my settlement amount? Or can I choose to do most of the repairs myself and subcontract out the remaining repairs? When I receive my settlement check, am I obligated to fix the house?

You need to read your insurance policy, but with an ACV policy and no mortgage, you will still need to demo the property so the city doesn't cite you. But, unless your policy says otherwise, you should be able to pocket the money and walk away.

Why haven't you asked the adjuster this question?

 

[Just Blue]

You need to read your insurance policy, but with an ACV policy and no mortgage, you will still need to demo the property so the city doesn't cite you. But, unless your policy says otherwise, you should be able to pocket the money and walk away.

Why haven't you asked the adjuster this question?

Probably because he thinks it will make him look suspicious...