Will claiming insurance money for home damage affect resale value

2 Replies

A home was damaged by a natural disaster. The initial money from the insurance company to fix damages was thought to be insufficient by the homeowner. The owner hired an insurance adjuster to get a larger settlement. If the insurance company awards the full value of a rebuild, will this A) make the home harder to sell because it implies the home needs to be rebuilt? and B) make this harder for the owner get home insurance in the future?

Thanks for any help you can provide.

@Eric Omanoff How serious were the damages? Is there structural damage requiring an engineer? Does the owner have a mortgage on the home? If all the repairs are completed and the home is brought back to pre-loss condition, or better, there won't be any issues. I am sure there are investors that may still be interested, even if the repairs were not completed.

The value of the settlement typically is not a factor in obtaining future insurance.  The cause of loss and frequency of claims play a large factor.

Keep in mind that hiring a public adjuster may not ensure a higher payout for the owner, but it will ensure a portion of the settlement is paid to the public adjuster.

Hi @Jose Linares Thanks for the help. The damage was pretty serious. A hurricane damaged the roof and caused some cracks in walls. 

We aren't sure if we need an engineer, the current plan is to give the insurance report to our realtor and ask what we need to fix.

I had the thought to hire a home inspector and work off of their report since that is likely what a buyer will do, but maybe an engineer would be a better way to go.

There is no mortgage on the home.

Thanks again for the help!