Quick answer: Yes. An open claim does not stop a sale in Florida. Before you sign, settle three things in writing: who keeps the claim money (you, your lender, or the buyer by a written assignment), how the lender on the check will release it, and what you disclose. Known flood damage, insurance claims related to flood damage and flood assistance must be disclosed at or before the contract is signed. Keep the claim moving, keep your policy active until closing, and have a Florida real estate attorney review the plan.
Many Florida owners are still working through claims from recent storms: a check stuck because the mortgage company is on it, or repairs half done while the claim is argued. Can you sell now, or must you wait?
You do not have to wait, but the claim money, the lender and the disclosure need a plan before you sign. This guide explains each one. It is general information, not legal or insurance advice. Your policy and your contract control, so a Florida real estate attorney and a licensed insurance professional should review your own case.
Three Things an Open Claim Touches in a Sale
| Question | Why it matters | Who decides |
|---|---|---|
| Who keeps the claim money | The money may arrive before or after closing | Your policy, your lender and your written agreement with the buyer |
| How the lender releases the check | A co-payee check cannot be cashed without the lender | Your mortgage servicer’s loss draft process |
| What you disclose | Flood damage, flood claims and flood assistance have a specific Florida rule | Florida Statute 689.302 and your attorney |
1. Who Controls the Claim Money
A property claim belongs to the policyholder who had the loss. Selling the house does not by itself move the claim to the buyer. So if the house closes before the insurer pays, you, not the buyer, are usually still the one the insurer deals with, along with any mortgage company named on the policy.
That leaves three common ways to handle it, and each one should be written into the contract or an addendum:
- You keep the claim. The price reflects the house as it is, damage included. Any money paid later goes to you and your lender under the policy. This is the simplest option when repairs have not started.
- You use the money for repairs before closing. Works when the claim is paid, the lender has released the funds and there is time to finish the work with permits.
- You assign the claim to the buyer. The buyer takes over the right to the remaining benefits and the price is adjusted. In 2023 Florida banned most assignments of post-loss benefits under residential policies issued on or after January 1, 2023. That ban is aimed at contractors and other service providers. The same statute says it does not apply to an assignment to a later purchaser of the property who has an insurable interest (Florida Statute 627.7152). So an assignment to your buyer can be possible, but it depends on your policy terms and your lender, and it needs an attorney to draft it.
Whatever you choose, write down the claim number, amounts paid and in dispute, and who receives any future payment.
2. Why the Mortgage Company Is on the Check
If you have a mortgage, your loan almost certainly required the lender to be named on your insurance policy. That is why claim checks often list both you and the mortgage company. The state’s Homeowner Claims Bill of Rights notes that your mortgage company may be listed as a co-payee on the settlement check.
Servicers handle these checks through a loss draft process. In a 2012 report, the consumer group United Policyholders described a common pattern: smaller checks are endorsed and released, while larger amounts are held and paid out in stages after repair inspections (United Policyholders); that report was not Florida-specific. The exact rules vary by servicer and loan type, so call yours and ask for its process in writing.
At closing, the title company pays off the mortgage, but a later claim check may still carry the lender’s name. Before you close, ask the servicer in writing:
- How will you endorse or release a claim check that arrives after the loan is paid off?
- Do you hold any claim money right now, and how will it be applied at payoff?
Share the answer with the title company, since money the servicer holds can affect your payoff.
3. Claim Deadlines and Timelines That Still Apply
- Notice deadlines. Under Florida Statute 627.70132, notice of a new or reopened claim must be given within 1 year after the date of loss, and notice of a supplemental claim within 18 months. For a hurricane, the date of loss is the date of landfall.
- What that means for Helene and Milton. Helene made landfall in Florida in September 2024 and Milton in October 2024. The 1-year and 18-month windows for those storms have passed. If your claim was opened on time, it can still be open and still be paid. If you never reported the damage, ask an attorney about your options before you assume there is a claim to transfer.
- Payment timeline. Under Florida Statute 627.70131, within 60 days after an insurer receives notice of an initial, reopened or supplemental claim, it must pay or deny the claim or a portion of it, unless the delay is caused by factors beyond its control.
- Disputes. The Homeowner Claims Bill of Rights describes mediation through the Florida Department of Financial Services if you disagree with the insurer.
Keep your policy active until closing. The house and the risk are still yours until the deed transfers.
See cash as is, creative terms and a 1% listing side by side, in writing. It takes about a minute.
4. What to Disclose
Florida’s flood disclosure law, Florida Statute 689.302, requires a seller of a home to disclose, at or before the time the sales contract is signed, known flooding that damaged the property during the seller’s ownership, any insurance claim related to flood damage, including claims with the National Flood Insurance Program, and flood assistance received from any source, not only federal aid (Florida Realtors).
For damage that is not flood, such as wind or a roof leak, Florida case law also requires a home seller to disclose known defects that materially affect value and are not readily observable, so describe the damage, the claim, its status and any repairs in writing. A clear written record protects you, and it usually makes the buyer more comfortable, not less.
Steps Before You Sign a Contract
- Gather the claim file. Policy declarations page, claim number, adjuster reports, estimates, letters and every payment.
- Write down where the claim stands. Paid so far, amount in dispute, open items and the adjuster’s contact.
- Call your mortgage servicer. Ask about money it holds and how it will release a check after payoff. Get the answer in writing.
- Decide who keeps the claim. You, repairs before closing, or a written assignment to the buyer. Have an attorney draft any assignment.
- Prepare the disclosures. Use Florida’s flood disclosure if flooding was involved, and describe other damage in writing.
For more about selling a house that already has storm damage, read our guide to selling a storm-damaged house in Florida. If you own in Lee County, our Fort Myers selling page covers local options.
Three Ways to Sell With an Open Claim
Every homeowner deserves options. Here are three, in this order. For a side by side view, see cash offer vs listing vs selling on terms.
1. Cash, as is
We may buy the property as is with our own funds, or our contract may be assigned to another buyer; your written offer will say which. We do not need a mortgage lender to approve the house, so open damage or an open claim is less likely to hold up the sale. We look at the house, the damage and the claim file, then put the plan for the claim money in writing with the offer.
Subject to qualification, property inspection, and transaction terms.
2. Creative terms: subject-to or seller financing
In a subject-to sale, the buyer takes the deed and makes the payments on your existing mortgage. The loan stays in your name. The lender can call the loan due under the due-on-sale clause. Both sides should use a real estate attorney. With an open claim, the paperwork must also say who holds the insurance policy, who handles repairs and where claim money goes, because the lender will still be on the check. With seller financing, you act as the bank and the buyer pays you over time, so your attorney should require the buyer to insure and repair the house.
Subject to qualification, property inspection, and transaction terms.
3. A 1% full-service listing
If the house can be repaired and will appeal to buyers on the open market, a listing on the MLS through our licensed brokerage partner may bring the highest price. Our partner is a separate licensed Florida brokerage. The listing fee is 1%. Buyer agent compensation is separate and negotiable. A financed buyer will need to insure the house, so keep repair records, permits and the claim file ready.
Subject to qualification, property inspection, and transaction terms.
How HOMKEYS Can Help
HOMKEYS LLC buys homes across Florida from our office in Brickell, Miami. We show you cash, terms and a 1% listing side by side, in writing, and every closing goes through a licensed Florida title company. We cannot quote a price or promise an outcome on a claim before we see the house and the claim file. Subject to qualification, property inspection, and transaction terms.
Frequently Asked Questions
Can I sell my house in Florida while an insurance claim is still open?
Yes. Florida law does not stop a sale because a claim is open. What matters is what your contract says about the claim money, what your lender requires, and what you tell the buyer. Put the plan for the claim in a written addendum and have a Florida real estate attorney review it.
Who gets the insurance money if I sell before the claim is paid?
Whoever the policy and your written agreements say. The claim belongs to the policyholder who had the loss, and a mortgage company named on the policy usually has a right to the money too. A buyer gets it only if you agree in writing. Florida’s 2023 limits on assigning claim benefits exclude a later purchaser of the property who has an insurable interest, so an assignment to your buyer is possible, but it needs careful drafting by an attorney.
Why is my mortgage company’s name on the claim check?
Most mortgages require the lender to be named on the policy, so the insurer may list the lender as a co-payee. The state’s Homeowner Claims Bill of Rights notes that your mortgage company may be listed as a co-payee on the settlement check. Ask your servicer for its loss draft process in writing. When you sell and the loan is paid off at closing, ask how the lender will release or endorse any check that arrives later.
Is it too late to file a claim for Hurricane Helene or Milton?
Probably, for a new claim. Florida Statute 627.70132 requires notice of a new or reopened claim within 1 year after the date of loss and a supplemental claim within 18 months. For a hurricane, the date of loss is landfall. Helene made landfall in September 2024 and Milton in October 2024, so both windows have passed. A claim that was opened on time can still be open and paid. Ask your insurer or an attorney about your own dates.
Do I have to tell the buyer about the claim?
If water from flooding damaged the house, yes. Florida’s flood disclosure law requires a seller of a home to disclose known flood damage during ownership, any insurance claim related to flood damage (including NFIP claims) and flood assistance from any source, at or before the time the contract is signed. For other damage, Florida case law requires a home seller to disclose known defects that materially affect value and are not readily observable, so describe it in writing and let your attorney review the wording.
Not legal or insurance advice. This guide is general information about Florida home sales. Laws, policies and lender rules change, and every claim, policy and contract is different. Talk with a Florida real estate attorney and a licensed insurance professional about your own case before you sign anything.
Tell us about the house and the claim. We will show you cash, terms and listing side by side, in writing. Subject to qualification, property inspection, and transaction terms.
Sources
Last checked October 4, 2026.
- https://flsenate.gov/laws/statutes/2025/627.70132
- https://m.flsenate.gov/Statutes/627.70131
- https://m.flsenate.gov/Statutes/627.7152
- https://m.flsenate.gov/Statutes/689.302
- https://floridarealtors.org/news-media/news-articles/2025/09/florida-expands-flood-disclosures
- https://www.myfloridacfo.com/docs-sf/consumer-services-libraries/consumerservices-documents/understanding-coverage/consumer-guides/english—homeowner-claims-bill-of-rights.pdf
- https://uphelp.org/can-mortgage-lenders-hold-your-insurance-money-hostage/
⌂ Equal Housing Opportunity. HOMKEYS LLC does not give legal, tax or insurance advice. Talk with a Florida real estate attorney or licensed insurance professional about your situation.