What should I collect before listing the home?

Start with a claim ledger. Record the date and cause of loss, claim number, carrier, adjuster, policy period, deductible, inspection dates, estimates, payments, recoverable depreciation, mortgage-servicer involvement, completed work, open work, and any disagreement. Attach photographs from before temporary protection, the carrier’s written estimate, contractor proposals, permits when applicable, invoices, receipts, and communications.

TDI advises homeowners to notify the company promptly, photograph or video the damage, make only temporary repairs needed to prevent additional loss, and keep receipts. Permanent work before the carrier can inspect may complicate the claim. (Texas Department of Insurance, Home insurance guide, accessed October 3, 2026.) (Texas Department of Insurance, 2026)

Ask the carrier for a written claim status instead of relying on a dashboard label. “Open” could mean inspection pending, coverage review, supplemental estimate, recoverable depreciation, payment processing, disputed scope, or administrative closure still pending. Each status creates different questions for a buyer and closing team.

Call Build the sale-ready file: 214.429.4907 or organize the claim documents with Kaitlin.

Do not discard removed materials until the carrier says inspection is complete, and do not describe work as completed until the property supports that statement.

Do I have to disclose an open insurance claim in Texas?

The disclosure question is broader than whether a claim number exists. A seller needs to address known property conditions and answer the applicable disclosure form truthfully. TREC’s Seller’s Disclosure Notice 55-1, effective May 28, 2026, implements disclosures required by Texas Property Code Section 5.008 for covered previously occupied single-family residences. Statutory exceptions exist, so ask a Texas attorney which duty and form apply to your sale. (TREC Seller’s Disclosure Notice 55-1, May 28, 2026; Texas Property Code §5.008.) (TREC, 2026) (Texas Property Code §5.008)

Describe the physical facts, not an optimistic conclusion. Identify the affected area, date of loss, temporary protection, completed work, and remaining work. Provide supporting documents through the proper transaction channel. If the condition or claim changes after the original disclosure, ask counsel whether an update is required and how it should be delivered.

TDI explains that CLUE reports can contain seven years of property claims, with the date and type of loss, amount paid, policy number, claim number, and insurer. A seller can request the report and use it to help a buyer understand the property’s claim history. Review it for errors rather than assuming the report matches your records. (Texas Department of Insurance, CLUE guidance, updated October 14, 2024.) (Texas Department of Insurance, 2024)

For a Frisco or Plano disclosure plan, prepare the disclosure file: 214.429.4907 or review the sale sequence with Kaitlin.

Disclosure is not a substitute for repair, and repair is not a substitute for accurate disclosure. Keep both tracks current.

Who controls insurance proceeds when the home has a mortgage?

Do not assume the seller alone controls the money. The CFPB explains that a homeowners claim check is generally payable to both the homeowner and mortgage servicer or lender. Servicers commonly release funds in stages as work progresses and after inspections. Policy terms and mortgage documents control the actual process. (Consumer Financial Protection Bureau, reviewed May 28, 2024.) (Consumer Financial Protection Bureau, 2024)

Ask the servicer’s loss-draft department for its written process. Confirm endorsements, inspection requirements, contractor documentation, draw timing, payoff interaction, and what happens if the loan is paid at closing while proceeds remain. A regular mortgage customer-service representative may not administer insurance-loss funds.

Separate money already paid from money that may become payable later. Replacement-cost coverage can involve an initial actual-cash-value payment and later recoverable depreciation under policy conditions. Supplements may still be under review. None of those amounts should be represented as guaranteed until the carrier confirms them in writing.

Continue making required mortgage payments while the claim is pending unless the servicer gives different written instructions. Property damage does not automatically suspend the loan obligation. (Consumer Financial Protection Bureau, reviewed June 27, 2024.)

How should the sale contract address the open claim?

The contract needs property-specific terms, not a generic promise that “insurance will handle it.” Define the present condition, agreed repair scope, access, contractor responsibility, proof of completion, inspection rights, permit or engineering documents, handling of proceeds, deductible allocation, closing condition, and what happens if a required approval or repair does not arrive.

Distinguish pre-contract damage from a new casualty after the effective date. In TREC’s current resale contract 20-19, effective July 1, 2026, Paragraph 14 addresses fire or other casualty after the effective date. If restoration is not completed by closing for reasons beyond the seller’s control, the form describes buyer choices that can include termination, a limited extension, or acceptance in damaged condition with an assignment of insurance proceeds if the carrier permits and a deductible credit. The signed contract and facts control, and a builder, condominium, or custom form may differ. (TREC One to Four Family Residential Contract 20-19, Paragraph 14.)

An existing open claim does not automatically fit the casualty paragraph merely because insurance is involved. Have a Texas attorney draft or review special provisions and any assignment. Real estate license holders should not create legal rights by improvising language beyond their authority.

Have an offer on a claim-affected home? Coordinate the offer terms: 214.429.4907 or map the negotiation timeline with Kaitlin.

Calendar the buyer’s inspection, financing, insurance, appraisal, title, repair, walkthrough, and closing dates separately. One extension may not protect every deadline.

How do I prove repairs were completed correctly?

Create a before-and-after packet. Include dated photographs, signed scope, change orders, invoices, proof of payment, warranties, permits and inspections when required, engineering or remediation reports when applicable, and the carrier’s final correspondence. Make clear which documents came from the carrier, contractor, municipality, engineer, or seller.

The buyer’s inspector evaluates visible property conditions for the buyer; that inspection does not settle the seller’s coverage claim. The carrier’s adjuster evaluates the insured loss; that does not guarantee the buyer or lender will accept the repair. A municipal inspection addresses code or permit requirements within its scope; it does not warrant the whole house.

If work will continue after contract, control access and insurance. Confirm who owns materials, who bears risk, whether the contractor can work after a transfer, whether permits remain valid, and whether warranties transfer. Do not leave these questions for the final walkthrough.

TDI’s claim guide recommends protecting the property from further damage, saving receipts, and letting the adjuster inspect before permanent repairs. That record also helps the sale team explain the sequence honestly. (Texas Department of Insurance, filing a homeowners claim guide.)

For repair-document coordination in McKinney or Allen, assemble the repair record: 214.429.4907 or plan the repair handoff with Kaitlin.

Ask the buyer’s lender and insurer what they require early. A repaired roof acceptable to the seller’s carrier can still generate documentation questions for a new policy or loan.

Should I finish the claim, close with repairs pending, or delay?

Compare the routes against the actual claim stage and buyer’s financing. Finishing repairs before marketing can simplify the buyer’s inspection and insurance review, but it may delay launch. Selling during repairs can work when the scope and money are controlled, but it requires careful access, documentation, and contract terms. Delaying closing can create time, but only through a signed amendment that addresses related dates and obligations.

Do not reduce the decision to “take a credit.” A credit does not make unsafe damage acceptable, compel a carrier to pay, transfer coverage, satisfy a lender, or eliminate disclosure duties. Model the net proceeds only after the deductible, unpaid repair balance, disputed items, held funds, mortgage payoff, and transaction costs are known.

Texas Insurance Code Chapter 542 contains claim-handling timing provisions and exceptions. Application depends on the policy, notices, requests, loss, and claim facts. Treat statutory timing as an attorney or coverage-counsel question, not a guaranteed closing schedule. (Texas Insurance Code Chapter 542.)

Call Compare the timing options: 214.429.4907 or review the verified milestones with Kaitlin.

A workable route leaves the buyer, seller, carrier, servicer, title company, and lender working from the same written facts.

What should be verified before closing?

Before the final walkthrough, reconcile the claim ledger. Confirm current property condition, repairs completed, repairs remaining, issued payments, held funds, open supplements, carrier permissions, servicer instructions, warranties, permits, disclosures, contract amendments, buyer inspections, lender conditions, and title-company requirements.

Ask the title company and attorneys how any agreed funds, endorsements, releases, assignments, or escrow arrangement will appear in the closing file. Do not create a side agreement that conflicts with the sale contract, insurance policy, mortgage documents, or lender instructions.

Confirm the buyer can obtain required property insurance for the home as it will exist at closing. The seller’s open claim and the buyer’s new coverage are separate underwriting decisions. A buyer’s quote is not final proof that every condition has been accepted.

If a material fact changes, pause long enough to obtain the updated professional decisions. A moving date should not force an undocumented transfer of risk.