If just prior to selling our house the roof was damaged and repaired, are we liable to turn over insurance proceeds to the new owners?

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If just prior to selling our house the roof was damaged and repaired, are we liable to turn over insurance proceeds to the new owners?

A tornado came through our area right before closing and lifted some shingles on the corner of the roof of the house we were selling. Because it was such short notice, my husband patched the roof and then the realtor (who is a dual agent in this case) sent a guy out to inspect my husband’s work. We paid the guy $40 in cash and notified our insurance company of the damage. Final walkthrough occurred and settlement, without incident. Insurer sent us a check to replace the entire roof because they said it was a verified disaster area. New owners are demanding we give them the full amount of the check.

Asked on July 30, 2011 Pennsylvania

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

Read the terms of the written contract between you and the new owners of the property as to who is entitled to the insurance proceeds for damage to the property before close of escrow. Its provisions on the subject assuming there is mention of such will control the dispute between you and the new owners.

If the agreement is silent on the subject and the new owners bought the property knowing about the roof damage which seems to have been repaired before close of escrow, they should not be entitled to any insurance payment for the damaged, now repaired roof in that they received what they paid for, a house with a repaired roof.

It seems that you got paid insurance money for a roof repair quote from your insurance company under your own policy and had the roof repaired for less than the amount of the check received. The new owners want the repaired roof and the check for the excess where you were able to get someone to do the roof repair for less?

 

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

Read the terms of the written contract between you and the new owners of the property as to who is entitled to the insurance proceeds for damage to the property before close of escrow. Its provisions on the subject assuming there is mention of such will control the dispute between you and the new owners.

If the agreement is silent on the subject and the new owners bought the property knowing about the roof damage which seems to have been repaired before close of escrow, they should not be entitled to any insurance payment for the damaged, now repaired roof in that they received what they paid for, a house with a repaired roof.

It seems that you got paid insurance money for a roof repair quote from your insurance company under your own policy and had the roof repaired for less than the amount of the check received. The new owners want the repaired roof and the check for the excess where you were able to get someone to do the roof repair for less?

 


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