In Florida, Can You Sell Your Home With an Open Insurance Claim And Still Recover Monies?

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Yes. You can sell your house with an open claim or lawsuit as long as you had an insurable interest in your property when the loss happened.  However, before you move forward with that sale, there are a few things to think about:

  1. You have to tell the buyer about the claim.  Talk to your realtor about this before you put your home on the market and consider advising your insurance company that you intend to sell your home.
  2. If your insurance claim was denied, consider hiring the right experts, like an engineer or roofer, to evaluate the loss.  Once the home is sold, the new owners won’t appreciate you knocking on their door requesting an inspection.
  3. If you don’t make repairs before you sell and they need to be done, but you sell your house for full market price, you may have a difficult time proving your insurance claim.  Consequently, before you sell, either reduce the purchase price by the value of repairs or be able to prove that you had to sell your house for less than full market value. When recovering from the insurance company, it will likely pay you based on ACV (actual cash value) as opposed to RCV (replacement cost value) as you will not be making the repairs as you sold the house.
  4. If you make the repairs/replacements prior to selling your home, you will simply seek reimbursement from the insurance company for those costs.

Before you put your house on the market, talk to your realtor and your lawyer to make sure you won’t lose your insurance benefits.  And if you have any questions as to your legal rights, please do not hesitate to contact The Farber Law Firm at 305-774-0134.

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