I am selling a home and during the buyers home inspection they found hail damage to the roof. This is the only repair they asked us to make and they want us to pay $6,500 to replace the roof. I called my insurance company and the adjustor came out and said we will receive $21,000 to replace the roof, gutters,
I am selling a home and during the buyers home inspection they found hail damage to the roof. This is the only repair they asked us to make and they want us to pay $6,500 to replace the roof. I called my insurance company and the adjustor came out and said we will receive $21,000 to replace the roof, gutters, window seals, and a shed they said was damaged by hail.
Since the buyer did not ask for any of these other items to be replaced (and in my non-expert opinion the shed, window seals and gutters are fine and were not damaged by hail), can I pay the buyer s contractor the $6500 they want and keep the rest? Since we are selling the home and moving there is no issue with worrying about future homeowner s claims on that house. Also, because I bank with the same company I get my insurance through, they are waiving the requirement to put the bank s name on the check.
The buyer is going to have a bear of a time trying to buy insurance on the house, if ALL of those things have not been fixed. Their new insurer won't want to cover a house with preexisting damage that has already been paid. Yes, they'll find out when they run their CLUE reports.
Potentially, you could totally screw up this sale.
Insurance company doesn't care what you do with the money. However, if there was recoverable depreciation withheld from your claim payment, you must repair the roof in order to receive the final payment. In other words, what you received from the insurance company is all they are going to pay if you do not repair the roof. Again, they don't care what you do with the money.
There are disclosure laws in most states, It is possible that you could be subject to a law suit from the new buyer if he finds out. If you are sure there are no residual problems (Home inspection report) you may be OK to proceed as outlined.
You are the homeowner and your insurance company says your roof needs to be replaced.
So you replace the roof.
If you don't, you need to change your disclosures to include the roof needs to be replaced.
Also, what would you do if the sale falls through.
You either tell your insurance company that you only want the roof repaired or you advise the buyer of all the repairs. If would be fraudulent to fix just the roof and pocket the difference.