Pipes burst over the winter

Thanatos0320

Long story short, the pipes in one of my houses burst over the winter. I got the utility company to admit that it was their fault and now their insurance company is sending a check for the damages.

I was planning on selling the house, but if I wanted to sell the house as is and keep the money, is there anything I should do so the insurance company can't come back and ask what I did with the money?

Patrickbrick

Good luck with that, you will have to disclose to the buyer.

Thanatos0320

For clarity, I was planning on selling the house before the pipes burst. Now that they have, I'm planning on using the insurance to repair the house and sell it on the market. Yesterday, someone said he'd buy my house as is (with the damages). The amount he offered + insurance money is roughly the same as what I'd get if I fixed the house and sold it. This would would make everything on me. I could get rid of the house in 2 weeks vs 2+ months (repairing + time to sell after repaired).

peter4jc

I don't think the insurance company cares what you did with the money.  On some items, say a lousy roof, they can deny coverage until repairs are made.  So you may or may not get grief from them in that regard.  Patrick is correct, the bigger issues will be during the sale.  I wouldn't see the benefit in selling it as is; the buyer will deduct the cost of fixing the plumbing from the asking price.  Your best bet IMO is to find a way to fix things for less than what the insurance company gave you and pocket the difference.

dirtdude

Sell it, as long as you have disclosed the issue with the buyer then you are good, not like you are pulling something over on  him.

Thanatos0320

I appreciate the answers. I've done the math and figured it's best selling it as is. The buyer has viewed all of the damages and still wants to pursue.