A house fire leaves more than visible damage. There is smoke in the walls, an insurance adjuster on the phone, a mortgage still coming due and a family that may be living somewhere else. If you are thinking about selling a fire-damaged house in Florida, you have more options than you may realize, but the order in which you do things matters. This guide explains how the insurance claim, your lender, permits, disclosure and taxes fit together for owners in Broward, Miami-Dade and Palm Beach counties.
Quick answer: You can sell a fire-damaged house in Florida as-is, without repairing it. Report the claim to your insurer first, keep paying the mortgage, secure the property and find out whether the city has opened an unsafe-structure case. Then compare three paths: repair and list, list as-is, or sell to a cash buyer. Most lenders will not finance a badly burned home, which is why as-is buyers are usually paying cash.
First Steps After a House Fire, Before You Decide to Sell
Whatever you decide later, the first few days protect your claim and your options.
- Call your insurance company. Report the loss right away and ask what they need from you. Keep receipts for hotels, meals and other costs, since your policy may reimburse them.
- Get the fire report. Request it from the fire department that responded. Your insurer and any future buyer will want it.
- Secure the property. Board up openings and protect what remains. Ask your insurer before you begin, and ask whether the home being vacant affects your coverage, because many policies limit coverage on a vacant home.
- Document everything. Take photos and video of every room before anything is cleaned or removed, and hold off on demolition until the adjuster has seen the damage.
- Call your mortgage servicer. The loan stays in force after a fire. An early call is the best way to learn what hardship options exist.
How Fire Insurance Works When You Plan to Sell
The insurance claim is often the largest financial piece of the decision, so settle what you can before you sign a contract.
Florida claim deadlines
Under section 627.70132 of the Florida Statutes, a new or reopened property claim is barred unless the insurer receives notice within 1 year of the date of loss, and a supplemental claim within 18 months. Your policy also calls for prompt notice, so treat those dates as outer limits rather than a schedule.
If the home is a total loss
Florida’s Valued Policy Law, section 627.702, generally makes an insurer liable for the full insured amount of a building that is a total loss from a covered peril. Whether the damage counts as a total loss can be disputed, so have that conversation before you accept a settlement or agree to a sale.
Your lender may be on the check
Mortgage lenders are normally named on the policy, so building-damage checks are often payable to both you and the lender. The lender may hold the money and release it in stages as repairs are completed. If you sell instead of repairing, ask your servicer in writing how the funds will be applied, and how that fits with the payoff at closing.
Selling does not automatically hand over the claim
Generally the claim belongs to whoever was insured on the date of the fire, and selling the home does not by itself end it. Under section 627.7152(13), post-loss benefits under a residential policy issued on or after January 1, 2023 cannot be assigned, so a contract that promises to transfer your claim to the buyer deserves an attorney’s review. Your sales contract should state plainly what happens to the claim and any money still to come.
Public adjusters
A licensed public adjuster represents you, not the insurer, and takes a percentage of the payment. Florida caps most of those fees at 20 percent of the claim payments, or 10 percent for events under a state of emergency declaration (section 626.854). Read any agreement carefully, and check the license before you sign.
Repair It or Sell It As-Is? How to Compare Your Options
The right answer depends on the extent of the damage, your insurance payment, what you still owe and how soon you need to move on. A simple way to compare is to write down what you would keep at the end of each path, as we explain in our guide to net proceeds.
| Repair, then list | List as-is | Sell to a cash buyer | |
|---|---|---|---|
| Money you put in first | Repairs, permits and carrying costs, partly offset by insurance | Little, apart from securing the home | None |
| Likely buyers | Widest pool, including financed buyers | Mostly investors and cash buyers | One buyer, already in hand |
| Timing | Often many months, plus time on the market | Depends on the market and the buyer | Can close in as little as 7 days |
| Agent commission | Usually | Usually | Usually none |
| Main risk | Costs and delays beyond the estimate | Few showings; deals that fall through | Offer below the value of a repaired home; compare carefully |
Repairing usually yields the highest sale price, and it can be the right choice when the damage is limited and the insurance money covers the work. Selling as-is tends to make more sense when the damage is structural, the insurance payment falls short, or you simply cannot manage a rebuild. If you are comparing buyers, our guide on how to choose a cash home buyer lists the questions to ask.
Permits, Unsafe-Structure Cases and the 50 Percent Rule
Fire repairs generally require permits, and burned electrical systems, roofs and framing draw close inspection. Three local issues deserve an early look:
- Unsafe-structure cases. A building official can declare a badly burned home unsafe. In South Florida these cases can go before an unsafe structures board, and an owner who does not act can face an order to repair or demolish, with costs that may become a lien. Respond to any notice quickly, and tell potential buyers about it.
- The 50 percent rule. In a flood zone, federal rules treat damage “of any origin” as substantial when restoring the home would cost 50 percent or more of the structure’s pre-damage market value. A fire can therefore trigger the requirement to bring the home up to current flood rules. Our guide to storm- and flood-damaged homes explains how this works.
- Old permits and liens. A fire often brings earlier open permits or unpermitted work to light, as well as code liens and fines. A municipal lien search shows what a buyer’s title company will find.
What You Must Disclose When Selling After a Fire
Selling as-is means you are not promising to make repairs. It does not remove your duty to be truthful. Under the Florida Supreme Court’s decision in Johnson v. Davis, a home seller must disclose known facts that materially affect value and that a buyer could not easily observe. For a repaired home, that can include a past fire, hidden smoke or structural damage, and any unpermitted repairs. Keep the fire report, the insurance estimates and the permit records together, because clear records make any sale easier.
Taxes on a Fire-Damaged House
Three federal rules tend to come up, and each one is worth raising with a tax professional:
- The home-sale exclusion. IRC section 121 lets qualifying owners exclude a large part of the gain on a main home from tax. Under section 121(d)(5), the destruction of a home is treated as a sale for this purpose.
- Insurance money can count as a gain. If the payment exceeds your basis in the home, the excess may be a taxable gain. Section 1033 can allow you to postpone it if you replace the property in time.
- Fire losses are often not deductible. A personal casualty loss is generally deductible only when it comes from a declared disaster, so an ordinary house fire usually does not qualify.
When the Fire Is Part of a Bigger Problem
Fires rarely arrive at a convenient moment, and some situations add a further step:
- Rental property. Under section 83.63, if a casualty substantially impairs the tenant’s use of the home, and the tenant did not cause it through wrongful or negligent acts, the tenant may terminate the lease and move out. Check your landlord policy for lost-rent coverage.
- Condominiums. The association’s insurance and your own unit-owner policy each cover different parts of the loss, so speak with the association manager and your agent before you sell.
- Inherited homes. If the owner has passed away, the probate process usually decides who can file claims and sign the deed.
- Behind on the mortgage. If payments have already been missed, read our Florida foreclosure timeline and our comparison of a short sale and a cash sale, since time now matters.
How Selling a Fire-Damaged House to Property Solution Services Works
Property Solution Services has been buying South Florida homes since 2016, with more than 900 homes purchased, and the head of the company has more than 32 years in the South Florida real estate business. We buy houses as-is, so there is no cleanup or repair work for you to do, no commissions, and we pay the closing costs. You tell us about the property and the fire, we visit once, and you receive a written cash offer. If it works for you, you choose the closing date, which can be in as little as 7 days.
We serve Broward County, Miami-Dade County and Palm Beach County, including Plantation, Hollywood, Pembroke Pines, Miramar, Davie, Miami and Hialeah. For other difficult situations, see our guide to selling your house in any situation. Hablamos español: lea nuestra guía. To talk it through, call (954) 693-9333 or request a cash offer.
Frequently Asked Questions About Selling a House After a Fire
Can I sell a house with fire damage in Florida?
Yes. A fire-damaged house can be sold as-is in any condition, including a home that cannot be lived in. Most mortgage lenders will not finance a badly burned home, so the realistic buyers are usually cash buyers and investors. You still have to disclose the known damage to the buyer.
Do I have to disclose a past fire when I sell my house in Florida?
If the fire or its effects materially affect the home’s value and a buyer could not easily see them, Florida law generally requires you to disclose them, and that duty applies even in an as-is sale. Share what you know, along with the repair records and permits.
Do I keep the insurance money if I sell after a fire?
Generally the claim belongs to the person insured on the date of the fire, so selling does not automatically end it. If you still have a mortgage, however, your lender may have a right to the proceeds. Get the arrangement in writing in your sales contract and review it with a Florida attorney.
How long do I have to file a fire insurance claim in Florida?
Florida law bars a new or reopened property claim unless the insurer gets notice within 1 year of the date of loss, and a supplemental claim within 18 months. Your policy also requires prompt notice, so call your insurer as soon as everyone is safe.
Do I still have to pay my mortgage after a house fire?
Yes. The loan stays in force after a fire, even if you cannot live in the home. Call your servicer early to explain the situation and ask about any hardship options, because falling behind adds a second problem to the first.
How fast can I sell a fire-damaged house for cash?
Once the title work is clear, a cash sale can close in as little as 7 days, or on a later date that suits you. An open insurance claim, an unsafe-structure case or a probate estate can add time, so raise those issues at the start.
This article is general information, not legal, tax or insurance advice. Rules change and every claim is different, so speak with a Florida attorney, a tax professional and your insurance representative before you sign a contract.