Guide · November 9, 2026
Selling a storm-damaged house with an open insurance claim
A storm-damaged house can be sold before the claim is paid. Florida sets dates for the claim and for the insurer, and the contract decides who keeps the claim money.
Key points
- In Florida, notice of a new or reopened claim is due within 1 year after the date of loss, and a supplemental claim within 18 months.
- For a hurricane, the date of loss is the day it made landfall.
- A Florida insurer must acknowledge your claim within 7 days and pay or deny it within 60 days of notice, unless factors beyond its control apply.
- If you have a mortgage, the claim check can name both you and the lender, and the lender's rules decide how the money is released.
- Florida bars signing over post-loss benefits on policies issued since January 1, 2023, with an exception for a later buyer of the house.
- You can sell the house as is with the claim open. Agree in writing who keeps the claim money.
First: protect your claim
If a storm has just damaged the house, report the claim before you think about selling. Florida Statutes section 627.70132 says notice of a new or reopened claim must be given within 1 year after the date of loss, in the way the policy asks. Notice of a supplemental claim, for more damage from the same storm or costs that came up during repairs, is due within 18 months.
For a hurricane, the date of loss is the day it made landfall. For other windstorms, it is the date the National Oceanic and Atmospheric Administration verifies the event. Take photos and video of every room and the roof before anything is cleaned or moved, keep the damaged items until the adjuster sees them if you can, and keep every receipt for tarps, fans and emergency work.
This guide explains the claim and the sale in Florida, with a note on Arizona. It gives no legal or insurance advice. Read your policy, and ask a lawyer or a licensed public adjuster about your own claim.
What the insurer must do, and when
Florida Statutes section 627.70131 sets the insurer's clock. It must review and acknowledge each communication about the claim within 7 calendar days. It must begin its investigation within 7 days after it receives your proof-of-loss statements, and any physical inspection must happen within 30 days after it receives them.
Within 60 days after it receives notice of the claim, the insurer must pay or deny it, in whole or in part, unless factors beyond its control apply. A payment made after that time carries interest at the rate in section 55.03. Write down each date: the day you reported, the day it acknowledged, the inspection, and each payment or letter.
| Step | Florida deadline | Section |
|---|---|---|
| Report a new or reopened claim | Within 1 year after the date of loss | 627.70132 |
| Report a supplemental claim | Within 18 months after the date of loss | 627.70132 |
| Insurer acknowledges your message | Within 7 calendar days | 627.70131 |
| Insurer starts its investigation | Within 7 days after proof of loss | 627.70131 |
| Physical inspection, if any | Within 30 days after proof of loss | 627.70131 |
| Insurer pays or denies | Within 60 days after notice of the claim | 627.70131 |
Why the first check may be smaller than the estimate
If your policy pays replacement cost, section 627.7011(3)(a) applies. On a replacement cost policy for a dwelling, the insurer must first pay at least the actual cash value of the loss, less the deductible, and then pay the remaining amounts as the work is performed. Actual cash value counts the age and wear of what was damaged, so it is lower than the cost of new work.
This matters for a sale. If you sell before the repairs are done, the rest of the replacement cost is paid as the work is performed, and the work may then be the buyer's. Ask the insurer in writing how much has been paid, how much is held back, and what happens to the held amount if the house is sold.
Who the claim check is made out to
If the house has a mortgage, the national bank regulator's consumer site says the check may be payable to both the policy holder and the lien holder. Banks have different policies for releasing claim money, so check your loan papers or ask your servicer how it handles a claim check.
When you sell, the title company pays the lender in full from the sale. Ask the servicer what happens to any claim money it is holding once the loan is paid off, and get the answer in writing before closing.
Handing the claim to the buyer, or keeping it
You have two ways to deal with an open claim when you sell. You can keep the claim and its money, and sell the house at a price that reflects the damage. Or you can hand the claim to the buyer, who finishes it and does the repairs, and set the price with that in mind.
Florida Statutes section 627.7152(13) says a policyholder may not assign post-loss benefits under a residential policy issued on or after January 1, 2023. Subsection (11)(a) excepts an assignment to a later buyer of the property who has an insurable interest in it after a loss. If you plan to hand the claim to the buyer, put it in the purchase contract and have a lawyer review the wording.
| Choice | You get | Watch for |
|---|---|---|
| Keep the claim | The claim money, plus the sale price | The sale price reflects the damage; held replacement cost may not be paid without repairs |
| Hand the claim to the buyer | A sale price that counts the claim | The contract must say so; the policy date and section 627.7152 decide if it is allowed |
| Repair first, then sell | A higher price for a repaired house | Time, contractor costs, and the deductible |
Telling the buyer about the damage and the claim
Tell every buyer about the storm, the damage, the claim, what has been paid and what is still open. Give copies of the adjuster's estimate and the insurer's letters. A buyer who takes the house as is still needs to know what they are buying, and an open claim is part of the house's history.
A buyer with a bank loan needs insurance to close, and an insurer may decline a house with open damage. A Florida seller also gives a written flood disclosure at or before the contract, which the hurricane season guide explains.
Selling during hurricane season in Florida →
Keep the house from getting worse until closing
A damaged house keeps changing while it waits. Rain comes through a torn roof, wet drywall grows mold, and an open window lets people in. Each new problem can lower the price and can raise questions from the insurer about what the storm caused and what came later.
Keep the tarp tight, keep water out, run fans or a dehumidifier if the power is on, and lock every door and window. Visit once a week, or ask a neighbor to, and take dated photos each time. Tell the insurer if the house is empty, and ask what the policy says about that.
- The claim number and the adjuster's name
- The adjuster's estimate and every letter from the insurer
- Each payment received, with its date
- Receipts for tarps, fans and emergency work
- Dated photos and video from before and after the storm
Arizona storms and claims
Arizona storms can bring wind, hail and flooding. Florida's claim deadlines in section 627.70132 apply only to Florida policies, so for an Arizona house, read your policy for the notice period and the time limit to sue.
Arizona Revised Statutes section 20-461 lists unfair claim practices, including failing to acknowledge and act reasonably promptly on claim communications and failing to affirm or deny coverage within a reasonable time, when an insurer does them often enough to show a general business practice. The same steps apply: report fast, take photos, keep receipts, and agree with the buyer in writing on who keeps the claim.
Selling a storm-damaged house to BIMINIO
BIMINIO buys storm-damaged houses as is in Tampa, Miami, Orlando, Lakeland, Phoenix and Glendale, with tarps on the roof and the claim open. You make no repairs. 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.
Storm damage in Florida: the claim deadlines →
Want a number for your house? BIMINIO buys in Florida and Arizona, as is. A written offer comes within 24 hours.