Frances Badayos | author
ICHQ | Site Author
If a natural disaster or other uncontrollable event causes damage to your home, then your logical next step is to file an insurance claim to receive compensation for your losses. These claims can take quite some time to fully resolve, though, and you might find yourself in a situation where you wish to sell your home while the insurance claim is still open.
At Insurance Claim HQ, our home insurance lawyers help homeowners in the state of Louisiana navigate all manner of complexities that can arise during a home insurance claim. If you are having trouble resolving your claim or need to know if you can sell your house with an open insurance claim, then we have the answers for you.
Can You Sell Your Home With an Open Insurance Claim in Louisiana?
You have the right to sell your home practically whenever you wish, but there are certain special considerations for home insurance when selling a home. The key to keeping yourself out of any moral or legal trouble is transparency.
This starts by communicating to your realtor that there is an open insurance claim on the property before you list it for sale.
It is also extremely important to disclose any factors that might affect the home’s value to a potential buyer. This includes the presence of an open insurance claim as well as any lingering effects of the original damage or other conditions that are not readily apparent. You can convey all of this to a potential buyer by accurately filling out a seller’s disclosure form. Taking this proactive step will make it easier to answer the question of can you sell your house with an open insurance claim.
What Are Your Options for Selling a Home With an Open Insurance Claim?
Choosing to sell a home with an open insurance claim does present the question of how to handle any future insurance benefits under that claim. You have the option of choosing what happens to homeowners insurance when you sell your house, whether that is retaining your rights to those benefits or assigning them to the buyer. Keep in mind that the latter will likely make the property more appealing to interested parties. Either way, it remains crucial that you document the damages related to the insurance claim and disclose any other relevant information.
When it comes to disclosing the details of an open insurance claim, it is important to communicate to a buyer whether the policy will pay the actual cash value or the replacement cash value for the damages. The actual cash value takes depreciation into account. In contrast, replacement cash value takes current repair costs into account without subtracting from compensation based on depreciation, making the latter more appealing for a buyer who might receive those benefits after purchase.
Is It a Bad Idea To Sell With an Open Insurance Claim?
After answering the question of can you sell your house with an open insurance claim, the next course of action is to determine if it is actually a good idea in your circumstances. There is no one-size-fits-all answer, as personal circumstances make all the difference when it comes to deciding whether to sell. However, bear in mind the possible impact on the value of your property.
Having an open claim can deter buyers who might interpret it to mean that the home is in poor condition or that they might be responsible for repairs, thus lessening the sale price. On the flip side, it may be easier for you to recover lost value because selling the home waives any claim for recoverable depreciation.
Why Is Documentation Important for Any Open Claim?
Keeping an accurate evaluation of the damages is a must when dealing with the aftermath of a disaster on your property, even if you were not yet planning to sell at the time of the damage. Thorough record-keeping can put you in a much stronger position when negotiating with the insurance company and helps facilitate open communication with a prospective buyer.
Our home insurance claim lawyers at Insurance Claim HQ can take an active role in helping you document all the information relevant to your claim and even smoothing over the claim itself with the insurance company. We strive to make it as easy as possible for you to get the compensation you deserve and sell your home without a hitch.
Contact Our Louisiana Home Insurance Claim Lawyers Today
The team at Insurance Claim HQ is passionate about helping Louisiana homeowners make accurate, on-time claims after disaster strikes. We are also ready to answer any questions you might have about the process, such as can you sell your house with an open insurance claim. Contact our home insurance claim lawyers by phone or online serving New Orleans today and learn more about how we can help you get the outcome you rightfully deserve.