The short version
- First: keep everyone safe, call your insurance company, and secure the house so nothing else gets damaged.
- If you have a mortgage, insurance checks for the house are usually made out to you and your lender, and the lender may release the money in stages.
- You don't have to rebuild. We buy fire- and water-damaged houses as-is, and we've bought a fire-damaged house and had our contractors rebuild it.
The first few days after a fire
- Get the fire report. Your insurance company will ask for it.
- Call your insurance company and open a claim. Ask what your policy pays for temporary housing.
- Secure the house. Board up broken windows and doors. Most policies expect you to take reasonable steps to prevent more damage.
- Take photos and video of everything before anything is moved or thrown out.
- Keep every receipt: hotel, food, board-up and clothing.
- Tell your mortgage company. They have a stake in the house and the insurance money.
How the insurance money works
If you have a mortgage, the insurance check for the house is usually made out to both you and your lender. Many lenders deposit it into a special account and release it in stages as repairs are done. Contents and living-expense payments usually come to you directly.
If you'd rather sell than rebuild, talk to your adjuster before you sign anything. Policies differ on what you can collect if the house is sold before it's repaired. Ask in writing so there are no surprises.
What the city can do with a damaged house
A badly damaged house can be condemned for occupancy. In the City of St. Louis, the Building Division can order an owner to secure or demolish a building that's a danger to the public. If the owner doesn't, the city can do the work and bill the owner through a special tax bill that attaches to the property. County cities have their own versions of these rules. Don't let a burned-out house sit open and unsecured.
Rebuild or sell?
| Option | Good when | Watch out for |
|---|---|---|
| Rebuild and stay | You love the house and insurance covers the work | Months of contractors, permits, and inspections while paying for housing |
| Rebuild, then sell | Insurance covers most of the work and you can manage a big project | Cost overruns, contractor delays and holding costs before you ever list |
| Sell as-is now | You want to move on, or insurance won't cover everything | Know your claim and mortgage payoff numbers first |
We've been through this
We've bought a fire-damaged house in St. Louis and had our contractors rebuild it. We know what the repairs really cost and what the city will ask for. That lets us make a real offer quickly on houses most buyers won't touch, including ones with smoke, water and mold damage. We pay all the closing costs, and there are no inspections or appraisals from us. Your mortgage gets paid off at closing.
Water damage, frozen pipes and mold work the same way. See also our guide to selling a house as-is.
Common questions
Can I sell my house before the insurance claim is settled?
Often, yes, but ask your adjuster first. Policies differ on what you can still collect after a sale. Get the answer in writing before you sign a contract.
Do I have to clean up the fire debris first?
No. We buy fire-damaged houses as they sit, debris and all.
What if I still owe on the mortgage?
The mortgage is paid off at closing from the sale, like any other sale. Keep your lender in the loop from day one.
Do you buy houses that have been condemned?
Yes. We buy condemned and boarded-up houses across St. Louis City and County.
This guide is general information for Missouri homeowners, not legal, tax or financial advice. Laws and local procedures change. Talk to a Missouri attorney, CPA or HUD-approved housing counselor about your situation. HJ House Buyers is a real estate investment company, not a law firm or real estate brokerage.