You can sell your house with an open insurance claim.

However, there are PROS and CONS to doing this. Make sure you understand how to sell your home with an open claim by reading this article. 

can I sell my home With an Open Insurance Claim

Can I Sell My House With an Open Insurance Claim?

Most home insurance policies allow you to sell a house with an open insurance claim. However, legal issues come into play and influence the right cause of action for you, the buyer, and the insurance company.

Can I Sell My House With an Open Insurance Claim

Some of the questions that may arise when selling a house with an open insurance claim include:

  • Who collects the proceeds from the claim?
  • Can/ Should you repair the damages before listing the house?
  • Do the damages affect the price of the house?
  • Who has the insurable interest?
Can I Sell My House With an Open Insurance Claim

If these dilemmas are not well thought through and the right action is taken, you risk losing the home insurance claim or selling the house at a lower value than what is ideal. You may also be unable to sue the insurance company if it fails to honor your rightful claim.

Ultimately, you should be able to sell your house with an open insurance claim as long as you had an insurable interest in the property at the time of the damage. However, whether you can transfer the claim to the potential buyer or not depends on the terms stipulated in the assignment clause of your homeowner’s insurance policy.

Table of Contents

Who will buy my house fast for cash in Colorado? “I NEED TO SELL AS-IS AND I MUST SELL MY HOME FAST IN DENVER COLORADO, but there is an open insurance claim.

We Buy Colorado Homes Fast For Cash

NO REPAIRS, NO REALTORS, LOCAL HOME BUYERS. Because of these fantastic benefits, you can sell your house fast in Denver, Lakewood, Aurora, Arvada, or Colorado! 

Fill out the form to request a FREE cash offer consultation today. Or Call Us At (720)-738-6020

How to Go About an Open Claim With Your Insurance Company

Sell My House With an Open Insurance Claim

If you have damages in your home, such as fire damage or termite damage there are two main ways to go about it. You may either repair the damages and seek compensation for the repairs  through a home insurance claim or leave the house as is and seek damages.

If you choose to repair the damages, you must record everything. Otherwise, you will not have anything to report and claim to the insurance adjuster. On the other hand, if you leave the house as is, you can sell the house at less than the market value and the recoup through the damage claim.


In both scenarios, it is best to involve an engineer or inspector for an accurate valuation of the damages. If the insurance company refuses your claim, you have a professional who can testify.

Note that the cause of the property damage is the most contestable aspect of any insurance claim. Therefore, you want the engineer or inspector to outline the cause of the damages clearly. Proof is the best way to beat any denial or contention by the insurance company during the claims process should they arise.

Case Study: We Bought a House With an Open Insurance Claim

As a Colorado cash buyer, I have bought many houses over the years. In-fact we have been involved in over 1000 cash real estate deals. Because of this we have had homeowners sell their house to us with open insurance claims on more than one occasion.

Most recently I paid cash for a house in Lakewood, CO with an open insurance claim. It was quite a challenging scenario, because there were several parties considered to be at fault.

But, let me tell you how I navigated it. Firstly, the seller called saying, “I need to sell my house fast in Lakewood” and this is why they reached out to a legit cash home buyer like us. 

Because I buy for cash it simplifies the process significantly. A cash sale immediately eliminates the mountains of red tape involved when buying using a mortgage or lender.  Buying it for cash – a bold move, yes, but a calculated one.

The paperwork? You’d think it would be a mountain of stress, but I handled it all. Every form, every document, every little detail – taken care of. How did the homeowner feel about this?

Elated, to say the least!

And why not? The whole process, from start to finish, was streamlined, hassle-free, and most importantly, easy. This experience was truly a testament to how smooth property transactions can be, when selling to a proven home buying company in Colorado like We Buy Houses In Denver.

home insurance claim

How to Sell a House With an Open Insurance Claim

how to sell My House With an Open Insurance Claim

Here are the most important steps to follow when selling a house with an open insurance claim with the homeowners insurance policy.

Inform Your Insurer You Will Be Listing the House for Sale

Instead of waiting until you have sold the house to notify the insurance company, it is better to get ahead of it. Clarify the terms of the policy and who will receive the compensation depending on whether you repair the house yourself or leave the damages as is.

Having this conversation will help you set the house’s listing price more realistically and clarify what to include in the seller disclosure and you can sell your house fast.

Notify Your Real Estate Agent

When consulting with your realtor about the house sale, you need to let them know that it has an open claim before it can be listed. They will help you with the claims process and setting the right price.

Disclose to the Buyers That the House Has an Open Claim

The law in most states requires the seller to disclose conditions about the house that are not apparent, e.g., unrepaired property damage and if there is an open insurance claim. If you opt to repair the house and sell it at full price, there is nothing to disclose. However, you must notify the potential buyer if you leave the damages as is.

If the claim is transferable, you can assign it to the buyer for them to receive the proceeds of the insurance claim check, then deduct the payable amount from the sale price. Once the homeowner’s insurance claim payout comes in, the new owner can use the insurance money to repair the property damage.

Potential buyers have the right to choose whether to move forward with the sale or not once they learn the house has an open claim. If they accept the sales offer with damages in the house, ensure everything is well-documented in the sales agreement.

Include images of damages, policy documents, copies of communication with the insurer detailing the amount to be paid, and the disclosure form.

Proceed to Close the Sale and the Transfer of Ownership

Have your realtor negotiate the closing terms, come up with the final sale document, and oversee the transfer of the property. 


Can I get to sell my house fast?

Well, no homeowners insurance company should deny or hold you back from sell your house fast for cash due to a pending claim. As long as you have proof, you should get compensated. The compensation amount can go to you or the buyer, depending on the terms stipulated in the assignment clause of your home insurance policy.

Whether you choose to repair the damages and seek compensation for repair costs, leave the damages as is and get compensated, or transfer the compensation to the buyer, always have proof of the damages. Hire a professional to assess the damages, record them, and estimate how much it would cost to repair. 

If any issues arise, you should be able to contest with proof. Beware of any insurance companies that may use the sale of the property to deny or delay a claim payout. Consult an attorney about your rights and protect your interests if in doubt.

Thoughts on how to sell my house fast for cash? We buy houses in Denver is ready to have the job done. As the leading cash buyer in Denver we pay cash for houses and we make it all FAST FOR YOU! Fill out this form to get your free cash offer from us. 


You can sell your house with an open insurance claim in Colorado. Even if you sell the damaged property before you get the check, the payout will still come to you. 

You could sell the house as-is to a cash home buyer or fix it up and then sell it. Of course, renovations could be a huge hassle and cost. 

For example, renovating the kitchen before you sell is not always the best option. Sometimes its better to skip the repairs and sell it as-is. 

What would you like to do?

Read this expert guide for detailed information on selling a house with an open insurance claim in Colorado. 

If you are interested in selling your damaged house without fixing anything (sell as-is) and want a fair cash offer, you can fill out this online form

An open insurance claim is a claim that has yet to be settled. This means the insurance company has not decided how much they will payout. 

Here’s an example in real estate.

A storm blows through, and your roof is damaged by hail. This is pretty common in Denver. You call the insurance company. A claim is opened.

From this point on, until the insurance company decides to pay or not, the claim is “open.”

After a few days or weeks, you will get a notification a decision has been made. Ideally, the insurance company sends you a check to fix your roof. Once the decision has been made to pay you (or not) the claim is closed, AKA settled. 

Of course, if you disagree with the outcome of the insurance claim, you could always dispute it. 

The easiest way to sell my house with an open insurance claim is to sell to a home-buying company that buys houses in as-is condition. This is because most traditional buyers are looking to buy a move-in-ready home.

A cash home buyer will not require you to make any repairs. Plus, a cash buyer doesn’t need a mortgage from a bank. Any home buyer using a mortgage will be subject to the lender’s rules. 

The lender may require the house to be in a specific condition. Therefore they may not give a loan on a place that was damaged. 

Selling to a local home buying company with a proven track record of buying houses with open insurance claims is the way to go, and is ready to give you a cash offer to buy your damaged home today.