Guide · November 9, 2026
Selling a house after a fire, a burst pipe or a leak
Fire and water damage keep growing after the event. Act in the first 48 hours, protect the claim, check Florida's total loss and 50 percent rules, then repair or sell the house as it stands.
Key points
- The EPA says to dry water-damaged areas and items within 24 to 48 hours to prevent mold growth.
- In Florida, report a property claim within 1 year after the date of loss, even if you plan to sell.
- Florida's valued policy law pays the insured amount on a total loss from a covered peril, but never more than it costs to repair, rebuild or replace.
- In a flood zone, repairs costing 50 percent or more of the building's value before the damage mean the house must meet local floodplain rules.
- A Florida public adjuster contract can be cancelled without penalty within 10 days after signing, and fees are capped by law.
- You can sell the house as it stands. Tell the buyer what happened and what has been repaired.
The first 48 hours after fire or water
Fire damage can come with water damage from putting the fire out. A burst pipe, a failed water heater or a roof leak does the same harm without the fire. Either way, the damage keeps growing after the event. The EPA says to dry water-damaged areas and items within 24 to 48 hours to prevent mold growth.
Stop the water at the main valve, or ask the utility to. Do not turn power back on in a wet or burned house until an electrician or the utility says it is safe. Take photos and video of every room before anything is moved, and report the claim to the insurer. Keep receipts for fans, pumps, board-up and any hotel stay, because the policy may cover them.
This guide explains the claim, the repair rules and the sale. It gives no legal or insurance advice. Read your policy and ask a lawyer, a licensed public adjuster or the local building office about your own house.
- Shut off water and power to the damaged area
- Photos and video of every room, the roof and the outside
- Report the claim, and write down the claim number
- Dry wet areas within 24 to 48 hours, or call a drying company
- Board up open windows, doors and roof holes
- Keep every receipt
Mold after water damage
Mold grows where water stays. The EPA's guide on mold says that when the moldy area is less than 10 square feet, most homeowners can clean it themselves. Larger areas, or houses with major water damage, call for the EPA's guidance on professional cleanup.
Mold is a fact a buyer needs to know. If walls were opened, tell the buyer what was found and what was removed. If the house sat wet, say so. A buyer who takes the house as is still prices the mold work into the offer, so a clear description helps you get an accurate number.
The insurance claim
In Florida, section 627.70132 says notice of a new or reopened property claim is due within 1 year after the date of loss, and a supplemental claim within 18 months. Section 627.70131 says the insurer must acknowledge your messages within 7 calendar days and pay or deny the claim within 60 days after notice, unless factors beyond its control apply.
If you have a mortgage, the claim check may name both you and the lender, and the lender's rules decide how it releases the money. The storm damage guide explains the claim check, the held-back replacement cost and how to hand an open claim to a buyer.
Selling a storm-damaged house with an open claim →
Florida's total loss rule for a fire
Florida Statutes section 627.702 is called the valued policy law. When a building is a total loss from a covered peril, and the premium was paid, section 627.702(1)(a) sets the insurer's liability at the amount the property was insured for. Section 627.702(1)(b) adds that the insurer is never liable for more than the amount needed to repair, rebuild or replace the structure.
For a partial loss from fire or lightning, section 627.702(2) sets the liability at the actual amount of the loss, up to the amount of insurance on that property. Ask the insurer in writing whether it treats your house as a total or a partial loss, because the answer changes what you are paid and what the house is worth to a buyer.
Public adjusters and disputes in Florida
A public adjuster works for you, for a share of the claim payment. Florida Statutes section 626.854(7) says you may cancel the contract without penalty within 10 days after signing. For an event under a governor's state of emergency, the window is 30 days after the date of loss or 10 days after signing, whichever is longer.
Section 626.854(11)(b) caps the fee at 10 percent of claim payments for an event under a state of emergency, during the year after the declaration, and at 20 percent for other claims. If you and the insurer disagree on a residential claim, section 627.7015 offers a mediation conference, which the policyholder can request and the insurer pays for.
The 50 percent rule in a flood zone
FEMA defines substantial damage as damage where the total cost of repairs is 50 percent or more of the building's market value before the disaster, regardless of the cause of damage, for a building in a Special Flood Hazard Area. A fire counts too. FEMA says a building with substantial damage must be brought into line with local floodplain rules when it is repaired, which can mean raising it. A local building official or floodplain manager makes the call.
Ask the building office of your city or county how it applies the rule before you plan repairs, and tell any buyer what it said. In Hillsborough County, the county's own page explains its 50 percent rule.
| Question | Why it matters |
|---|---|
| Is the house in a Special Flood Hazard Area? | The 50 percent rule applies there |
| What is the building's value before the damage? | The building office uses it to test the 50 percent line |
| What do the repairs cost? | At 50 percent or more, current flood rules can apply |
| Is a permit needed for the repairs? | Unpermitted repairs can cause a code case later |
Repair first, or sell as it stands?
Repairing a fire or water damaged house takes contractors, permits, inspections and time, while the mortgage, taxes and insurance keep coming due. Repairs can bring a higher price. They can also find more damage behind the walls, and in a flood zone they can trigger the 50 percent rule.
Selling as it stands ends the work on one date. A buyer with a bank loan may not get one on a house that is not livable, so a cash buyer may be the one who can close. Compare what you would keep after repair costs and the wait with what you would keep from a cash sale today.
Cash offer vs listing: the costs →
What to tell the buyer
Tell every buyer what happened, when, what was repaired, what is still open, and whether there was mold. Give copies of the adjuster's report and any permits. In Florida, the Supreme Court held in Johnson v. Davis (1985) that a seller who knows of facts that materially affect the value of a home, and that the buyer cannot easily see, must disclose them. A Florida seller also gives the state's written flood disclosure at or before the contract.
In Arizona, tell the buyer what you know as well. The guide on selling as is covers the disclosure rules in both states.
Gather the papers before you ask for offers: the claim number, the adjuster's estimate, each payment letter, any report from a drying or mold company, permits for work already done, and your photos. A buyer who sees the papers can price the work from facts, and fewer questions come up at the inspection.
Selling as is: what to tell the buyer →
Selling a fire or water damaged house to BIMINIO
BIMINIO buys houses damaged by fire or water in Tampa, Miami, Orlando, Lakeland, Phoenix and Glendale, as they stand. You make no repairs and no clean-up. Tell us what the insurer has paid and what is open, and we agree in writing who keeps the claim. You get a written cash offer within 24 hours, with the comparable sales we used, and you pick a closing date from 7 to 35 days out. We pay the closing costs. A cash offer is below full market value.
Selling a fire-damaged house in Florida →
Want a number for your house? BIMINIO buys in Florida and Arizona, as is. A written offer comes within 24 hours.