An open insurance claim in most cases does not hinder your ability to sell the property. There can be a number of reasons why a homeowner wants to sell their home while the insurance claim is still pending. Here are some things to keep in mind when doing so.
If you choose to sell your home and you have a lawyer left to deal with your insurance claim, it is best to inform them of any sale and seek their input and advice before doing so.
Be open and honest with your broker. Discuss the damage to the home and make sure it is revealed to potential buyers. Sellers of Florida real estate have a positive obligation to disclose latent defects or damages that are not obvious and that affect the value of the property.
When you sell your home, there are two options. You can assign the buyer the benefits of the insurance claim, or you can keep the benefits of the damage and lower the purchase price. Each option provides different considerations. If you choose to award the benefits of the insurance claim, you should leave the award of the insurance contract with a lawyer before you sign.
If you choose to keep the benefits of your insurance, you will probably not be able to recover the recoverable depreciation or compensation cost value for the damages. A prerequisite for this recovery is that once the house is sold, you can not carry out the repairs.
Here are some additional suggestions if you want to keep your insurance benefit.
- Make a clear note of how much you have reduced the selling price of the home in the seller's information form.
- Ensure that all necessary inspections are carried out.
- Make sure you notify the insurance company that you intend to sell the property and give them time to re-inspect if they request it.
These are just some of the considerations that must be taken into account when selling real estate with an open insurance claim and are by no means an exhaustive list. If you want to sell your property and want an open insurance claim handled by Merlin Law Group, call your attorney today to discuss potential issues.
More information on the sale of properties with an open insurance claim can be found in Amy Currotto's post, Who takes out the insurance compensation if the damaged property is sold?