Selling Your Home with a Pending Insurance Claim in Florida - What You Need to Know
Selling Your Home with a Pending Insurance Claim in Florida – What You Need to Know
If you’re selling your home while your insurance claim is still pending, you’re not alone—and you’re right to wonder how that affects your coverage and recovery.
You may have listed the home after a loss, or perhaps the burden of repairs and delays made you decide to sell the property as-is. Either way, it’s critical to understand how selling a home impacts your insurance claim, especially in Florida. VIP Adjusting has helped countless homeowners in Fort Pierce, Port St. Lucie, Stuart, and across the Treasure Coast navigate this exact situation.
Can I Sell My Home with an Open Insurance Claim?
Yes, but doing so can affect how much money you ultimately recover. Insurance claims are evaluated based on the date of loss. That means as long as you had an insurable interest at the time of the damage, you have the right to pursue the claim—even after selling the property. However, you may limit certain types of recovery (more on that below).
Actual Cash Value vs. Replacement Cost Value
Your policy requires the insurance company to pay you at least the actual cash value (ACV) of your damages—even if you haven’t completed the repairs. ACV is the depreciated value of your damages at the time of loss.
To receive the full replacement cost value (RCV)—which includes recoverable depreciation—you typically need to either complete the repairs or sign a contract to begin them. If you sell the home before doing so, the depreciation portion is no longer owed to you.
Selling Your Home Means Waiving Depreciation Recovery
When you sell your property, you give up your ability to complete the repairs. Since most insurance policies require repairs to be completed to trigger RCV payment, selling the home generally forfeits your claim to that recoverable depreciation.
Assigning the Insurance Claim During a Sale
Insurance claims in Florida are assignable post-loss. That means the seller and buyer can negotiate who receives the remaining claim benefits. This is typically done through an Assignment of Benefits (AOB) included in the sales contract.
A higher purchase price can be negotiated in exchange for transferring the remaining claim rights to the buyer. In these cases, we highly recommend having your public adjuster or attorney guide you through the AOB process before closing.
Depreciation Disputes and Scope of Work
If you’re only recovering ACV and not the full RCV, you may face a fight over both:
The scope of the repairs (what needs to be fixed)
The amount of depreciation taken by the insurer
Some materials, like roofing systems and cast iron plumbing, are more easily depreciated. Others, like tile floors, drywall, labor, and jobsite materials (e.g., tape, gloves, dumpsters) should not be depreciated.
VIP Adjusting’s team understands these nuances—and we fight to make sure depreciation isn’t exaggerated or misapplied.
Additional Living Expenses (ALE) / Loss of Use
Once you sell the home, you no longer have an insurable interest in the dwelling, and you’re no longer "displaced."
That means you typically lose your claim for Additional Living Expenses (ALE) or Loss of Use coverage, even if the home is still uninhabitable. Selling the home essentially ends your eligibility for this benefit.
A Realtor’s Perspective
To ensure our guidance aligns with real-world real estate practices, we’ve communicated with trusted real estate professionals, including the team at Coastal Properties. Their insights reinforce the importance of transparency between buyer and seller when a home is being sold with an unresolved insurance claim.
Whether negotiating an Assignment of Benefits or adjusting price to reflect open claims, experienced realtors understand how to navigate this process—and we advise all our clients to involve both a public adjuster and a real estate professional when considering a sale.
Final Thoughts
Selling your home while your insurance claim is pending doesn’t eliminate your right to payment—but it does change what you’re entitled to recover.
If you’re thinking about selling a storm-damaged or distressed property with an open claim, reach out to VIP Adjusting. We’ll help you:
Maximize your actual cash value payment
Evaluate the value of any recoverable depreciation
Coordinate with your realtor or attorney on Assignment of Benefits
Fight excessive depreciation deductions
Contact us today for a free claim evaluation.
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