How to Sell a House With an Open Insurance Claim

Dealing with property damage is hard enough—but trying to sell a house that still has an open insurance claim? That can feel nearly impossible. Whether you’re facing water damage, fire loss, storm repair delays, or contractor disputes, you might be wondering:
“Can I even sell this house right now?”

Good news: Yes, you can.
At MG Property Bros, we help homeowners sell their homes fast—even with active insurance claims or incomplete repairs. Here’s everything you need to know.

What Is an Open Insurance Claim on a Property?

An open insurance claim means that a loss or damage was reported to the homeowner’s insurance company, but the situation hasn’t been fully resolved. This usually involves:

• Waiting for a claim payout
• Disputes over the amount paid
• Repairs not yet started or finished
• Working with contractors or adjusters
• Holding on to insurance funds in escrow

Open claims can complicate a traditional sale, but they don’t make it impossible.

Challenges of Selling With an Open Claim

If you're trying to list on the open market, here’s what you might run into:

• Buyers may back out due to ongoing damage
• Lenders may refuse to fund a mortgage
• Agents may delay listing until repairs are finished
• Insurance companies may require updates before releasing funds
• You may be expected to complete all repairs—even if you can’t afford them

That’s where selling as-is to a cash buyer can make all the difference.

Your Options for Selling a House With an Open Insurance Claim

1. Finish the Repairs Before Selling (Traditional Route)

If you have the insurance money and are able to oversee repairs, you can wait until the work is done and list the house for top dollar.
Downside: Time-consuming, stressful, and may delay your financial relief.

2. Sell As-Is With the Claim Closed

Once you’ve received the insurance payout—even if you don’t do repairs—you may be able to disclose the damages and sell the home as-is. This requires transparency with buyers and may still lead to inspection concerns.

3. Sell As-Is With the Claim Still Open (Best for Speed)

You can sell your house while the claim is still active, especially to a cash buyer like MG Property Bros who is used to these situations.
You may be able to:

• Transfer the claim proceeds to the buyer
• Apply the insurance money toward your remaining mortgage
• Negotiate a discounted sale price based on the pending repair scope

We work with title companies and attorneys to structure this properly so there are no legal hiccups.

How MG Property Bros Helps You Sell With an Open Claim

We specialize in complex home sales that other buyers walk away from. Here's how we make it easy:

• Buy your home as-is—no repairs or cleaning needed
• Work directly with your insurance adjuster or attorney if needed
• Offer fair cash, fast
• Help navigate the claim process if you’re unsure how to proceed
• Close in 7–14 days with no commissions or fees

Whether your claim is due to a storm, fire, plumbing leak, or roof collapse—we’ve seen it all and helped homeowners just like you move on without delays.

What About the Insurance Payout?

If you’ve already received the insurance money, we’ll help you determine the best way to apply it:

• Toward your remaining mortgage
• As part of the transaction
• Held in escrow or released at closing

If the money is still tied up in dispute, we’ll explore creative solutions to help you sell now without waiting.

Let’s Simplify the Process

Selling a house with an open insurance claim doesn’t have to be messy or stressful. MG Property Bros provides a simple, respectful solution with no judgment and no red tape.

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