Fire, Flood & Major Damage
How to Sell a Fire-Damaged House When Insurance Does Not Cover Enough
A house fire is one of the most disorienting experiences a homeowner can face. Insurance adjusters, contractor estimates, a property you cannot live in — and a gap between what the insurance pays and what the repairs actually cost. There is another option: sell it as-is.
As-is
No cleanup, no remediation, no repairs required
24 hours
To receive an initial offer after walkthrough
Your pace
We close on your timeline, not ours
The insurance gap — why the payout often is not enough
Most homeowners insurance policies have one of two types of coverage: actual cash value (ACV) or replacement cost value (RCV). ACV pays what the damaged items were worth at the time of the fire, accounting for depreciation. RCV pays what it costs to replace them with new equivalents.
Even RCV policies have limits, deductibles, and exclusions. If the structure is damaged, the payout is often keyed to a specific rebuild cost that may not reflect what contractors are actually charging. Contractor prices have risen significantly in many markets in recent years — what the adjuster estimated and what bids are coming in at may be thousands of dollars apart.
The result is a property you cannot live in, a repair cost you cannot cover, and an insurance check that falls short. Selling as-is converts the property to cash now, rather than getting mired in a multi-month rebuild you may not be able to finance.
What we actually inspect when we buy a fire-damaged property
We do not shy away from damaged properties — we are experienced at estimating the cost of bringing them back. Our walkthrough for a fire-damaged home focuses on structural integrity (floor joists, roof framing, foundation), the extent of smoke and soot penetration into wall cavities, electrical and plumbing damage, and whether there is water damage from firefighting efforts.
We scope the repair ourselves and build that cost into our offer. You are not expected to provide contractor bids or remediation reports, though we will look at anything you have.
Fire damage does not affect the title. As long as the property is free of liens and the chain of title is clean, the closing process is the same as any other sale.
Cleanup, belongings, and liability
After a fire, the property may be in a state that makes access difficult. We are used to this. We can work around debris, smoke damage, and partial structures as needed for our inspection.
You are not required to remove anything from the property before closing. If there are salvageable belongings you want, we work around your schedule to retrieve them. After closing, the property is our responsibility.
One practical note: until the property closes, it is still your liability. Make sure your insurance remains active until the deed transfers. Most carriers will allow a vacant structure endorsement if you are no longer living there.
How we price damaged properties
Fire-damaged properties require a more detailed repair estimate than cosmetically dated homes. Here is how the math works:
After Repair Value (ARV)
What the property will be worth after a full restoration — based on comparable sales for renovated properties in your area.
Minus: Full Restoration Cost
Structural repairs, smoke remediation, mechanical systems, finishes — everything required to bring the property to retail condition. This is the biggest variable.
Minus: Demolition & Debris
If portions of the structure need to come down, demo costs are factored separately.
Minus: Holding & Selling Costs
Taxes, insurance, utilities, and resale costs during the renovation period.
Minus: Our Margin
Higher on severely damaged properties to account for unknown conditions discovered during renovation.
= Your Cash Offer
A real number you can count on — no contingencies, no inspection renegotiation.
We will share our repair estimate with you. It is in everyone's interest for you to understand how we arrived at the offer.
Common questions
Do I have to settle my insurance claim before I can sell?
Not necessarily. If your insurance claim is still open, the payout typically goes to you at settlement — or to your mortgage lender if one is listed as a loss payee. We can close while a claim is pending, though you should coordinate with your insurer and lender to understand how the insurance proceeds interact with the sale.
The fire damage is mostly cosmetic — smoke and soot, not structural. Does that matter?
It matters in that the repair cost will be lower, which means our offer can be higher. Smoke remediation is expensive ($5K–$50K+ depending on penetration depth), but it is far less than structural repair. The offer will reflect the actual scope of work.
My mortgage lender is involved. Can they block the sale?
Your lender cannot block you from selling — you own the property, not them. What they will do is receive their mortgage payoff from the closing proceeds. The title company coordinates all of this.
What about flood damage? Is that different?
Structurally, flood damage often involves foundation concerns and mold remediation that fire damage does not. We buy flood-damaged properties as well, though our inspection is more involved. The offer formula is the same.
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