Am I obliged to complete the repair work or give away my insurance claim money?

After home inspection I filed a storm claim to our insurer at the buyer’s roofer’s suggestion and informed the buyer’s agent. My insurance claim results didn’t come out before the buyer chose to take $5000 reduction in the purchase price and have the roof work done at their own cost. After closing the buyer found out that our claim went through and demanded $5000 from our claim check to cover their cost of roof repair ($10,000) based on the ins claim clause in the offer that reads as: seller warrants all work for which insurance work claims have been filed during seller’s ownership have been done.

Asked on October 22, 2011 under Real Estate Law, Wisconsin


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

If you have a written agreement concerning with the buyer of your property where there was a roof issue with the home that you had for sale that the buyer received a $5,000 reduction in price to cover the repairs as a condition of the sale, then the $5,000 price reduction in the price of the home is a complete resolution of this roof issue between you and the buyer.

As to the insurance proceeds that you received from your insurance carrier concerning the roof of your former property, that money is yours to keep since it arises from your claim as to the roof. You are under no obligation to share any portion of this money paid by your carrier to the new buyer.

Good luck.

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