Ismy buyer entitled to my insurance claim money if they purchased the property “as is”?

A home inspection disclosed that one side of the roof had less than 5 years of lifespan. Meanwhile, some roofers found some possible marks of storm damage and I filed a claim with my insurer and notified the buyer. The buyer asked for credit to cover the repairs of the roof and I dropped the sale price by $5000. The buyer accepted this offer and the “as is” condition of the roof. The home inspection contingency was therefore removed. My insurance claim was approved and my lender endorsed the check a few weeks before the closing day. Is the buyer entitled to my insurance money after closing?

Asked on October 19, 2011 under Real Estate Law, Wisconsin

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

If the buyer has agreed to purchase your property in an "as is" condition where you ended dropping the home's purchase price by $5,000 due to roof conditions but you also placed a claim with your insurance company concerning the roof's condition where your carrier ended up sending you a check prior to close of escrow, the check is yours to keep.

The rationale is that you made a claim under your own insurance policy concerning your property at the time based upon premiums that you paid.

The buyer ended getting a reduction in the sales price by $5,000 and you ended up getting a portion of the $5,000 back (or perhaps more).

Good luck.


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