First steps after a fire or a flood
The first week after the damage shapes everything else, including whether a sale is simple later. Before you think about selling:
- Report the claim to your insurer right away and get the claim number.
- Secure the house. Board broken windows and openings, tarp the roof, and shut off water at the main if a pipe burst. Keep the receipts and ask your adjuster which securing costs the policy covers.
- Document everything with photos and video before anything is removed.
- Stop the water damage from spreading. Wet drywall, carpet and insulation can start growing mold if they stay wet, so ask the insurer before you hire a drying company.
- Tell your mortgage company. If the lender is named on the policy, claim checks for the building may be made out to the lender as well as to you.
If the house will sit empty while you sort it out, read winterizing a vacant house. A second freeze in a damaged house is a common way a bad loss gets worse.
Ohio’s fire-loss withholding law
Ohio has a law aimed at fire-damaged buildings that are left standing. Under R.C. 3929.86, as summarized by the Ohio Department of Insurance:
- Back taxes first. Before paying a fire claim over $5,000 on a building in a city or township, the insurer must check with the county treasurer and pay any delinquent taxes or assessments out of the claim.
- A holdback on big losses. When the fire loss is at least 60% of the policy’s limit on the structure, the insurer sends $2,000 for each $15,000 of loss to the city or township officer, unless you’ve given the insurer a signed contractor’s estimate for removing, repairing or securing the building, in which case that amount is sent instead.
- Return of the money. The funds are returned once the repair, removal or securing is done and proven. If the city paid for that work, its costs come out first.
The holdback applies only where the city or township has adopted it by ordinance and filed it with the state, so ask your adjuster whether your community has. Our guide on selling after a fire insurance claim covers how this interacts with a sale.
Selling while the claim is still open
You can often sell before the claim is finished, but the order of events matters. The policy pays the insured for the loss; it doesn’t follow the house to a buyer. Before you sign a purchase agreement, ask your insurer:
- How the claim is valued, and whether any part is held back until repairs are completed.
- Whether you can receive the payment for the building if you sell rather than rebuild.
- What happens to contents and additional living expense coverage.
With those answers, you can compare two paths: settle the claim and sell the house as it stands, or use the claim to restore it and sell it repaired. An attorney or public adjuster can help if the claim is large or disputed.
Water damage, mold and the disclosure form
Ohio’s disclosure form asks directly about damage like this. The Department of Commerce version effective June 2022 asks whether you know of any previous or current fire or smoke damage, any water leakage or accumulation, and any water or moisture damage to floors, walls or ceilings from flooding, ice damming, sewer backup or leaking pipes. It also asks whether the house was ever inspected for mold.
Disclose the damage and any repairs, even if they were done well. If mold is the main issue rather than one symptom of a larger loss, see our page on selling a house with mold. If a storm opened up the roof, selling a house with roof damage is more specific. The disclosure form guide covers who must fill it out.
Rebuild, repair or sell as it is
Restoration makes sense when the damage is limited to a few rooms, the claim will cover the work, and you want to keep the house or sell it at full market value. Expect to manage contractors, permits and inspections, and to carry the house for months.
Selling as-is fits when the damage is widespread, the claim won’t cover the full cost, you’ve already moved into other housing, or you simply can’t face managing a rebuild. Remember that a house left empty after a loss raises its own insurance problem: standard homeowners policies often drop vandalism and glass coverage after 60 consecutive days of vacancy. See selling a vacant house if it’s sitting empty.
We price fire and water damage the way a contractor scopes it, room by room, and we can close before or after the claim settles. Tell us what happened and where the claim stands.
