Owning a Fire or Water Damaged Home: What options do you have?

by Jun 15, 2020

When all that’s left of a household is smoke, ashes, and wreckage, all you can think about is how the money you invested in it burned to ashes. And then another thought will sink in to you brain: “What am I going to do now?” After a hurricane hits the area, floor is seen all over the place, and heck! The basement is flooded, with all the lines down. Both cases, the property is more than not livable, with more impairment than worth the fix.

Don’t panic. Or at least, don’t faint. You have options.

Calculating structural losses along with property losses after the fire might be enough to make anyone wants to crumble to ashes as well. But there is still a way to either restore it or sell it. All options have to be done to maximize the asset’s capacity than lose its value.

In repairing a fire-damaged or water-damaged home, the very thing to do is call the insurance company and find out the coverage of repair the policy allows. In restoring a fire-damaged or water-damaged property, it is not as easy as rebuilding a tree house. It is a lot more work than when you acquired it. For instance, you have to see if there has been any structural damages, water damages, electrical damages, environmental damages, plumbing, and many more things which are not thought of before the fire. Repairing and restoring it is not a matter your wallet just shrugs it off because it’s going to cost you a lot more than the property’s initial value, depending on how bad the equipment casualty is. It can be really time-consuming and would involve lots of hands — general contractors, city inspectors, and insurance claim adjustors to name a few.

The other option, which is also the most convenient way, you have is to sell it. Depending on how bad is the equipment casualty, you can sell the house as it is. If only a small part of the house has been affected, an as-is sale can be possible. If you have a fire insurance, you will have a substantial payout for the fire-damaged house. When you add it up to the sale through an investor willing to purchase the property as it is, the sum could be equal to the property’s market value if it was sold without scathe.

However, to appeal more to the market, repairing the fire-damaged household before selling can be sold at a higher price. There are some investors who avoid dealing with fire-damaged homes and buyers will expect a big discount unless if you repair it. Selling the property would stop you from worrying about liability insurance when someone decides to have a look at the building and accidentally hurts themselves on your lot. Selling it could take some weight off your shoulder because you won’t have to be distressed and uncomfortable in returning to a house after restoration. The equipment casualty from the fire or water has been done. However, there is no need to feel hopeless. There are options to decide from on how to deal with a fire-damaged or water-damaged house that can help you get back on your feet.