Insurance claims can sometimes continue long after the home is sold and moved on from. If you have an open claim against your current property which you intend on selling there can be a number of potential effects that occur when the home changes hands. The cash value versus the replacement cost value of the repairs on your home may lead to a depreciated about of compensation that you could receive. There’s no guarantee that you will receive the compensation either unless there is a note in the bill of sale of the property.
One common tactic that is used if there is an open insurance claim on your home is to lower the price of the home for the insurance proceeds that you are expecting. Placing a note that the sale of the home has been reduced to account for the loss of anticipated insurance proceeds will help you to sell your home faster as well as make sure that you access the funds for their depreciated value at the end of the claim.
Although you will be selling your property at a deflated value, if you and your legal team feel as though there is a good chance you’ll be receiving compensation this can be a wise move. If your case is still very much in conflict there is a chance that you could be selling your property a deflated value and then lose your ability to open a future suit for proceeds.
Once you sell your home you basically lack any legal interest in insurance proceeds in that asset. If you haven’t opened up a suit or been pursuing compensation it is possible that selling your property could lead to an issue with your claim.
If you would like to learn more about this state of your insurance claim and if it may be wise for you to sell your house, contact our insurance attorneys today.
This post was written by Kelly-Anne Jenkins of Jenkins Law P.L. Kelly-Anne is an insurance claims lawyer. She specializes in personal injury, car accidents, and bicyclist injury. The information on this site is not intended to and does not offer legal advice, legal recommendations or legal representation on any matter. Hiring an attorney is an important decision, which should not be based on advertising. You need to consult an attorney for legal advice regarding your individual situation.