If I buy a fire damage home and my seller had insurance is there any way I can have insurance cover any of the damages at all? Would save a ton of money on the deal. By law everyone is required to have fire insurance right?
Got it, so to use any insurance money in the deal it would have to be done prior to sale by the seller? Nothing can be done after the sale if the property?
@Mike Flora If the owner owned the house free and clear (meaning, no mortgage), and they had insurance; they wouldn't have to make the repairs if they didn't want too, because there would be no one else who has an interest in the property.
However, if there was a mortgage on the property, any proceeds from an insurance settlement would be made out in the homeowners AND the bank/financial institutions name. Anytime there is a claim presented for insurance payment they would send an adjuster out there to get an estimate of damages and then they'd (most likely) be working with whatever contractor(s) were hired out to complete the various repairs, as those people would want to get paid.
I'm simplifying the claims process considerably; however, if there is a mortgagee, it would be difficult for that homeowner not to make the necessary repairs on the house. I'm not saying impossible, but difficult.
How would you save a ton of money on the deal if the fire house had insurance you could use up?
The key to saving a ton of money is buying the fire house at a deep discount.
Ok, got a friend who got a fire house and it's a huge rehab but a good deal and not sure if there is some insurance money that would help out in any way prior to sale or after sale. Thanks for the info guys