Insurance Claims

That is Shana Acquisto. She’s my wife, but she’s also a luxury real estate broker. She knows what she’s doing. And we’re going to talk about this topic right now. We’re going to see like, hey, if you get this money, what do you have to do?

Could you go shopping? Because there’s something you really want. What? You could pay it back.
You have to disclose it. Like what happens? What if, like escarole, there’s like so many things around this shop.

So let’s use this as an example, OK? We have a big hailstorm and all the time might have hail damage. It’s very common here. Yes, it is. You file a claim with your insurance company. Sounds good. They come out. They deem that. Yeah. Needs to be replaced. So what they typically do is initially cut you one check up front so you can get started and then that’s the check you go shopping with, maybe for a roofer or maybe for a new car, maybe for shoes, you know, whatever you’re in need of at the time.

OK, and then after the roof is completed, then you get another check from the insurance and it finalizes, you know, it completes the claim. OK, so what if you take that money and decide, oh, gosh, I’m really in a in a difficult I mean, I’m in a jam, so I need to I need this money for something else that just come out. My car broke down. I need a car. I’ve got to get to work.

It’s kind of like you’re borrowing from Peter to pay Paul up.
Pretty much. It’s not your money. It’s not really it’s really the house’s money, so to speak.

Right. It’s for a purpose. And should you money for a roof. So you’re paying something else. So that’s actually fraudulent.

Insurance is designed to make you whole and to bring you back to where you previously were prior to this event. OK, so what they’re effectively doing is they’re going out and they’re going to put a new roof for you, if that’s the case. Yeah. And then you are going to get you are going to give them a credit for the depreciation on your roof for how long it’s been on there and what like the wear and tear is and whatever that wear and tear. And then they’re going to replace the basically the rest of it and useful life, but then the labor in the materials and whatever that is. Right. To get one check for.

Yes. So if you take that money and spend it and then you decide you’re going to list your home and you haven’t made that repair, you can see the problem because on your seller’s disclosure, you guys all know that that’s a question on there. Have you received any proceeds and not paid for the damage?

And obviously I have a bad memory I might forget about.

You know, I can see where people would forget about it. And you need to make sure that you ask the seller and remind them of this, because if that happens and, you know, a new buyer goes to get insurance, it’s going to come up. You can’t hide from this. You can’t take the money and think nobody will know everything’s documented. It’s in a system. They can pull a clue report and say that you file the claim.

So that’s a key word. Clue or a clue report is basically a I think it’s like a car fax. Right. Kind of for the for the home.

And it related to insurance. Related to insurance. If anyone’s filed a claim. So it may show that, hey, you’ve had a water damage claim was filed, but it’s just sitting there, we don’t show it was completed. So what is going to have to happen is you’re going to have to prove that nothing that you didn’t get money and that you didn’t make any repairs.

So if you have a question about that and you’re like, hey, what’s this clue report all about? How can I get one? I’m not sure. I can’t really remember whatever that is for your client. You’re going to pick up the phone or text or email Kyle Dilworth, who’s had insurance, and he’s going be like, yeah, I’ll totally do that for you. I’ll look it up and find out regardless if he was the insurance agent or not. He’ll help you out and get that taken care of. He’s going to try to earn your business great gentleman. And he’ll make sure that he gets you that info very promptly

When we have a questionnaire at our listing appointments of all these different things like your fiancee and, you know, what kind of systems do you have and all of that, I think it’s a good idea. You know, we have in there to collect and find out who their loan is with, which is extremely important and find out their payoff. We should also find out who their insurance provider is and make sure that there’s nothing outstanding. Hmm.

Very good to be. So maybe a quick note. There may be Megan throws that in that paperwork and just puts that note in and we’ll talk about it later. But please make that note back and we’ll talk about

So what happens while this can hold up the whole deal? So now someone receives the money. They didn’t pay for it. They’re now listing their home. They’re selling it. They’re under contract. It comes up. So what do they have to do? Well, they have to pay that back. They can’t close until they pay that back and make that whole like it should have been done in the beginning. So it could be a problem with depreciation.

Now, this comes the same this becomes the same exact thing. Regardless if it’s a water claim, if it happens to be a hale claim, whatever type of insurance claim it is. Right. It’s going to basically be the same item, that it can be a problem and it will show up.

And if they say, well, I filed a claim and then I ended up with my deductible, I paid it myself. Well, we need proof that the repair was done and the. It was paid and the remedy was to remedy the problem,

So maybe think before you file if it’s small or minor and you are going to be selling your home because it does officially kind of like Carfax on your property, that there was this challenge. And if you happen to be super unlucky and you have a lot of claims, it is like a historic thing and a problem. And your company could be like, hey, if you have any more of those weird items and we could cancel you.

So a few years ago we had a situation where we had a seller and as of today, they still have not sold their home. They had two times that they had done this. They received money twice. I don’t know how it happened. I don’t recall all the ins and outs of it, but it was really interesting.

So really interesting is problematic. And maybe you don’t want to be too interesting, maybe be boring and just get the stuff fixed. Yes. If you actually have an insurance related issue. Who says so good. All right. So remember, Kyle, make sure that you talk about all these things with any questions. If any questions, re consult this video or if you need a higher level thing, ask Stacey or Shana and we’ll be sure to help you out there. OK. Two topics today go through.

Episode Links

Shana Acquisto , Stacey , Acquisto Real Estate

Episode Recorded Live on YouTube 7.1.21

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