by Guest » Fri Sep 14, 2012 11:03 am
I am planning to sell my present home, and its listed as well. However, there are some minor damages to the property, mainly cosmetic like discoloration, a bit of hail damage etc. I had made an insurance claim, and received a check for the repair as well. But the amount doesn't cover all the costs and I don't want to spend out of my own pocket for a home that I won't be using anymore. Will this be treated as a fraud now? Or do i have to pay the insurance money to the new buyer?
Posted: Mon Sep 17, 2012 12:39 pm Post Subject:
If the check is made payable only to you, you can cash it and not have the repairs done. You just take a hit when selling the home (either by missing a sale as the person does not want a home with damage or a reduced selling price). Do you have replacement cost coverage? If so, the difference in the repair cost may be that you were paid Actual Cash Value (replacement cost less depreciation) and will only be paid the additional amount once you can show the repairs were done. There is also your deductible that would account for some difference.
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