After a house fire in Delaware, should you rebuild or sell?

You don't have to rebuild after a house fire in Delaware. You can sell the house as it is, with smoke damage, a burned kitchen or boarded windows, to a buyer who pays cash. Before you decide, get the insurance figures and a contractor's estimate in writing, and check whether the house has been posted as unsafe. Then compare the two paths.

Most people make this decision while they're staying somewhere else, talking to an adjuster and replacing what they lost. The sections below follow the order things usually come up.

What happens in the first weeks after a fire?

Once the fire department leaves, the house needs to be secured. Windows and doors get boarded, and an open roof gets tarped. Insurance often pays for that as part of the claim, so keep every receipt.

After a serious fire, the fire marshal may investigate the cause. In most of Delaware that's the State Fire Marshal's Office. Wilmington has its own fire marshal. Don't throw anything away until the investigation and the adjuster's inspection are both finished.

The county or city may also post the house as unsafe to occupy. The notice usually lists what has to happen before anyone can live there again. A posted house can still be sold, and the buyer takes on the work needed to clear it.

How does the insurance money work if I sell instead of rebuilding?

Read the section of your policy on rebuilding. Many policies pay the actual cash value of the damage first, which is the repair cost minus wear and age. The rest of the replacement cost is paid only after the work is done. If you sell instead of rebuilding, you may not collect that second part.

If you have a mortgage, the lender's name is usually on the check for the building, and the lender may hold the money. When the house sells, the loan is paid off at closing. Ask your adjuster and your lender what happens to claim money that is still being held, and whether it comes to you.

Coverage for your belongings is usually separate from the building, so selling the house doesn't change that part of the claim by itself. Ask how long your living-expense coverage lasts if you decide not to rebuild.

What do I have to tell a buyer about the fire?

Delaware requires most home sellers to give buyers a written report of known material defects before an offer is made. Fire damage belongs on it, and so do repairs made after a fire, including damage you can't see anymore, like charred framing behind new drywall.

There are exceptions, such as sales by the executor or administrator of an estate. Even then, answer honestly when a buyer asks. A cash buyer buying as-is will price the damage either way, and being upfront keeps the deal from falling apart later.

When does rebuilding make sense, and when does selling?

Rebuilding makes sense when the damage stayed in one area, insurance will cover most of it, and you want to stay in the house. A kitchen fire that didn't reach the framing is often a job a contractor can finish in a few months.

Selling makes sense when the fire reached the roof or the structure, when the claim came up short, or when you already know you don't want to move back. It also fits a rental or an inherited house you weren't planning to keep. A rebuild means months of contractors, permits and inspections while you pay the mortgage, taxes and insurance on a house nobody can live in.

Get a written estimate before you decide. Then compare what you'd keep after rebuilding and selling with what a buyer will pay for the house today.

How we buy fire-damaged houses in Delaware

We buy fire-damaged houses in New Castle, Kent and Sussex County with no cleanup first. Leave the debris and the burned furniture where they are. There are no fees and no closing costs on our side.

Send the address, what the adjuster has paid so far and photos if you have them. We'll schedule the walkthrough once the fire marshal and your insurer are done with the house. Call or text (443) 806-8068.

Selling a fire-damaged house in Delaware

How we buy houses in Sussex County

How we buy houses in Wilmington