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insurance claim on pending home purchase ** post-close update **

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A few weeks ago I entered into contract to buy a house - close is a week from Friday. A week prior to my purchase there was a hail storm, but I had the house inspected and there were some small issues, but nothing related to the hail.  And nothing about the hail in the seller disclosure.

Tonight the seller's realtor sent an email stating that the seller had an claims adjuster come to the house and saw no roof damage, but "dings to some of the gutters" and that "since there was no mention in the inspector's report concerning the gutters, the sellers plan to put the insurance proceeds towards the siding repairs".  It's my understanding from my realtor that they are going to receive (or have received) $2,000.  Not sure if that's after deductible or pre-deductible.  The seller realtor said her and the seller would like me to come to the house to discuss, which seems a little odd to me.

I haven't had a chance to talk to the inspection company or anyone else, but am wondering what my options are here.  I've looked online, but a not sure where I stand.  The storm was prior to the contract, but I believe an amended sellers disc. gives me some options if I have to / want to back out (Nebraska).  Aside from a principled stand on feeling like the proceeds should be used for repairs (vs implied profiting to fix other issues) if anyone has any legal expertise I'd seriously appreciate an opinion.

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Wow. People are far too emotional about their home. I wouldn't be pursuing small claims. I would be pursuing a restra... (more)

elektronic (Aug. 09, 2017 @ 1:41p) |

You did report this to your agent / escrow / title company right?

forbin4040 (Aug. 09, 2017 @ 1:57p) |

I'd file a police report now.  What's to say the contractor didn't leave a box of nails in the house and the old owner s... (more)

ntr91 (Aug. 09, 2017 @ 3:05p) |

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Tell him to give you the 2k (through escrow) and you will take care of the repairs. Otherwise he could do the repairs on the cheap and pocket the difference.

Sellers never should be doing any repairs once in contract.

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I'll find out more today. I'm not sure if I can force him to repair / provide money since the storm was pre-contract, but the claim was post contract. Since it wasn't on the seller disclosure maybe.

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Get a free consult with a lawyer in your state to learn your contractual rights. You should have the home re-inspected to determine any damage caused by the storm.

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In the big picture of things, two grand is really not that much.
Have the realtors ask for escrow and see what happens.

Either way, were you good with closing before you found out about this or are you looking for a way out of the contract?

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Somebody filed a homeowners insurance claim for two grand?  Are you kidding me?

Just get YOUR inspector back out there to take another look.  If he finds anything noteworthy, go back to the table for a concession from the seller for X amount to address the damage.

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dcwilbur said:   Somebody filed a homeowners insurance claim for two grand?  Are you kidding me?

Just get YOUR inspector back out there to take another look.  If he finds anything noteworthy, go back to the table for a concession from the seller for X amount to address the damage.

they just made a claim. I imagine they were hoping for a new roof and it didn't come through but they got money for gutters etc.

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Thanks - realtor is getting a copy of the insurance report. I was good with the house prior, although the sellers were pretty squirrely about the small list of repairs I requested. I just don't want a storm in a few months to damage the gutters and then my insurer to tell me I'm on the hook for a few grand because they see a July claim on something that was never repaired/replaced.

Said differently it feels like the seller is trying to remove a sliver of equity from the property to put in his pocket.

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Get a roofer to look at the roof again. If you have damaged gutters you have damage on the roof.

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I got the claim report and there was a a 3,100 claim and sellers received 2,100 after a 1k deductible. They are offering to pay up to 2,000 to fix the roof and gutters and saying I will have to cover the remainder. I just sent an e-mail saying I will walk away with my deposit rather than take those terms. Looks like I'll have to keep looking for a house.

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TedMetro said:   I got the claim report and there was a a 3,100 claim and sellers received 2,100 after a 1k deductible. They are offering to pay up to 2,000 to fix the roof and gutters and saying I will have to cover the remainder. I just sent an e-mail saying I will walk away with my deposit rather than take those terms. Looks like I'll have to keep looking for a house.
  Do you have details about the claim (how they came up with 3.1k)?
What do you want from seller? Credit for 3.1k? Make a counter offer. Assuming you can legally walk away, chances are seller will meet somewhere between 2k and 3.1k.
ETA: To be thorough, have an inspector take another look in light of the recent damage before making a counter.

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They can't collect $2k from insurance for gutters and use the money for siding, the money has to be used for gutters (unless they are only collecting ACV and not replacement cost).

I'm not sure how this impacts you as a buyer of this house, but I would certainly be concerned. If they are telling the insurance company they replaced gutters and they don't it is fraud and the object in question is the home you are buying. I'm not sure about the insurance company's rights against you, they probably wouldn't have a lien against the house before you closed, but I wouldn't want get messed up in it.

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Basically they just disclosed additional problems with the house, I would think you could walk fairly easily. If still interested you should demand that they give you somewhere between 2,000 and 3,100 for the gutters. Not sure if future insurance co's can see that a claim was paid on gutters... but it could prevent a future claim.

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TedMetro said:   I got the claim report and there was a a 3,100 claim and sellers received 2,100 after a 1k deductible. They are offering to pay up to 2,000 to fix the roof and gutters and saying I will have to cover the remainder. I just sent an e-mail saying I will walk away with my deposit rather than take those terms. Looks like I'll have to keep looking for a house.
  Your timeline in the OP is hard to decipher.  You state that there was a hail storm before you were in contract.  From what I'm reading in the OP, it almost sounds like that it was before the inspection as well.  is that the case?

Was the hail after the inspection but before contract?

In my area this would never have gone to contract if there was an open issue like that.  

It almsot sounds that the sellers had a claim in process while all this was going on and were offering you the cash they received as a bonus if this all happened prior to the inspection/contract.

You're really going to walk away based upon a home owners deductible? and some dinged up gutters?  
If this was after your inspection, I could see you telling them to split the difference, you're being short sighted if that is the actual damage.  you're already out your inspection fee, appraisal and a ton of time.


If this happened before your inspection, I think you should thank your lucky stars they offered you anything.





 

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Update --

After several days sellers agreed to repairs the gutters using the insurance proceeds. I closed on the house last Friday, had the walkthrough Thursday and everything looked fine. Walked into the house and found a note saying I was horrible and a jerk. A swinging bench on the deck was smashed to pieces and the water line on the back of the refridgerator was cut, the cabiner under the sink was flooded with about a quarter inch of standing water. Found approx. 15 nails in the backyard across maybe a 10 foot diameter after my one went about an inch into my daughter's foot.

It's been a frustrating last few days. Talked to a lawyer and going to see what I can do in a small claims court.

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TedMetro said:   Update --

After several days sellers agreed to repairs the gutters using the insurance proceeds. I closed on the house last Friday, had the walkthrough Thursday and everything looked fine. Walked into the house and found a note saying I was horrible and a jerk. A swinging bench on the deck was smashed to pieces and the water line on the back of the refridgerator was cut, the cabiner under the sink was flooded with about a quarter inch of standing water. Found approx. 15 nails in the backyard across maybe a 10 foot diameter after my one went about an inch into my daughter's foot.

It's been a frustrating last few days. Talked to a lawyer and going to see what I can do in a small claims court.

  What the f is wrong with people!!!

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Wow. This is pathetic. Sorry for the BS OP. Hope your daughter is alright.

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TedMetro said:   Update --

After several days sellers agreed to repairs the gutters using the insurance proceeds. I closed on the house last Friday, had the walkthrough Thursday and everything looked fine. Walked into the house and found a note saying I was horrible and a jerk. A swinging bench on the deck was smashed to pieces and the water line on the back of the refridgerator was cut, the cabiner under the sink was flooded with about a quarter inch of standing water. Found approx. 15 nails in the backyard across maybe a 10 foot diameter after my one went about an inch into my daughter's foot.

It's been a frustrating last few days. Talked to a lawyer and going to see what I can do in a small claims court.

You got to be kidding.  File a police report too.  Take pictures/videos.  

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TedMetro said:   Update --

After several days sellers agreed to repairs the gutters using the insurance proceeds. I closed on the house last Friday, had the walkthrough Thursday and everything looked fine. Walked into the house and found a note saying I was horrible and a jerk. A swinging bench on the deck was smashed to pieces and the water line on the back of the refridgerator was cut, the cabiner under the sink was flooded with about a quarter inch of standing water. Found approx. 15 nails in the backyard across maybe a 10 foot diameter after my one went about an inch into my daughter's foot.

It's been a frustrating last few days. Talked to a lawyer and going to see what I can do in a small claims court.

  
Get a police report immediately. That is absurd. 

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Wow that is really low. The seller is just a horrible person. That seems criminal to me.

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I talked to the contractor and he said he'd come out and take a look at things (only half of siding work was done). He didn't know from the call whether it was his guys not replacing something that was under contract, or if he was not contracted for it. So the nails could be from his guys, but he said he would look at the nail and tell me if it was one they would have used. He also said he'd drag the yard with a magnet, but I haven't heard from him since Monday. Thank you all, my daughter is fine now (tetanus shot and on antibiotics for a week) with just a badly bruised foot. Have a Nest camera arriving today, and will file a police report if I find out it's not a siding nail.

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IMO I would look for a lawyer. You simply don't know what else the sellers might have done to the house if they did stupid things like that. I'm talking things like ungrounding electrical systems; doing something as simple as taking a bath could be a trip to the hospital.

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Wow. People are far too emotional about their home. I wouldn't be pursuing small claims. I would be pursuing a restraining order and talking to a lawyer asap. Dude sounds crazy. Damaged house over a $900 negotiation and exposed himself to a lawsuit that could (should) cost him several times as much.

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You did report this to your agent / escrow / title company right?

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TedMetro said:   I talked to the contractor and he said he'd come out and take a look at things (only half of siding work was done). He didn't know from the call whether it was his guys not replacing something that was under contract, or if he was not contracted for it. So the nails could be from his guys, but he said he would look at the nail and tell me if it was one they would have used. He also said he'd drag the yard with a magnet, but I haven't heard from him since Monday. Thank you all, my daughter is fine now (tetanus shot and on antibiotics for a week) with just a badly bruised foot. Have a Nest camera arriving today, and will file a police report if I find out it's not a siding nail.
  I'd file a police report now.  What's to say the contractor didn't leave a box of nails in the house and the old owner sensed an opportunity?    At the very least, he could be looking at vandalism charges for the bench and water damage.

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