Has your home suffered hail damage?
This has been one of the craziest weather weeks Kansas City has experienced in quite a while. Did your home suffer any hail damage? What about that home you're waiting to close on? Reece & Nichols Insurance is here to give you timely information and advice that you can use to serve your clients.
To start, it is a best practice to get at least one estimate from a local, reputable, well-established roofer or contractor that you select. Be careful with “door-knocker” roofers and contractors who are out canvassing neighborhoods for business after inclement weather. Many of these are out-of-town individuals or companies who follow the bad weather looking for the quick sale and do not perform quality work. Even worse, they often can’t be found to stand behind their work once they’re gone.
If weather related damage occurs to a home that is under contract and waiting to close, it is the seller’s insurance policy that should respond and pay for the repairs. Generally, a buyer’s insurer will not accept a home with significant existing damage. So it may be necessary to push out the closing date until all repairs have been made.
If the storm just so happens to have occurred on the day of or the day after closing (before the seller could cancel their policy, but after the time buyer’s policy became effective), it is usually the buyer’s policy that should respond and pay for the damage.
If there is damage, the seller and buyer will need to address how they wish to proceed. If your purchase/sale contract is on the KCRAR forms used by most real estate agents in the area, the form requires the seller to keep the property fully insured until closing and notify buyer of any damages in writing within 24 hours. The form contract further provides each party with options as to how they wish to proceed when damage is discovered prior to closing. In a nutshell, if the damage is minor, the seller can elect to replace or repair the damage. If the damage is not minor or the seller elects not to repair minor damage, the contract provides the buyer with two options.
We do recognize that some situations are unique and have extenuating factors. If you are dealing with one of these, or if you have questions on any of the above, reach out to us – we are here to help you!
Contact Reece & Nichols Insurance for more information.