Who’s Responsible for a Foreclosed House that Burns Down?

A foreclosed Raleigh home near Lake Boone Trail recently burned down. The 2-story home that burned down around 2:30 one morning took firefighters over an hour to control and injured one firefighter’s ankle. Investigators have determined the fire was an accident, but when it comes to foreclosures, who is responsible for house fire repairs and rebuilding costs?

According to the LA Times, most homeowners pay their insurance through their monthly mortgage payment. When a homeowner becomes delinquent on the mortgage to the extent a bank files a foreclosure, this means the owner is not paying for homeowners insurance either. At that point the insurance premium becomes the bank’s responsibility. What about fire insurance? Banks will be considered guilty of malpractice unless they secure fire insurance.

The bank-owned home in Raleigh that burned down was being renovated and the bank intended to list the home for sale at about $900,000. With the fire damage to the home, it is now uninhabitable. Rebuilding will need to take place before the home is put on the market.

If you’re experiencing problems with your fire insurance claim, one of our insurance dispute attorneys in Raleigh, Fayetteville or Dunn can help. Insurance dispute lawyers at Brent Adams & Associates represent policy holders through the long and notoriously complicated insurance claim process. Our attorneys know how insurance laws protect and affect our clients’ compensation. Contact one of our insurance dispute lawyers to review your case.