The first steps after a fire
Your first job after everyone is safe is to protect the claim. The order matters.
- Call your insurance company and open a claim. Ask for the claim number and your adjuster's contact.
- Read your policy. Find the proof-of-loss deadline and what it requires. Deadlines vary by policy, so do not assume.
- Secure the house. Board up openings and tarp the roof to prevent more damage. Keep receipts; these costs are often covered.
- Document everything. Take photos and video of every room before anything is thrown away.
- Ask about living expenses. Additional living expense (ALE) coverage can pay for a hotel or rental while you are displaced.
- Call your mortgage servicer. They will be involved in repair payments, and some have loss-draft departments.
If you have questions about your rights, the Delaware Department of Insurance consumer line is (800) 282-8611.
How insurance payments work
Insurance money for a house fire usually comes in more than one check, to more than one name.
| Type of payment | Usually payable to |
|---|---|
| Dwelling repair (structure) | You and your mortgage lender together |
| Additional living expenses | You |
| Personal property (contents) | You, under most policies |
Because your lender is on the repair check, it often holds the money and releases it in stages as work is done. That protects the lender's interest in the house, but it can slow repairs. The Insurance Information Institute's guide to the claims payment process explains this well.
If you sell before repairs, ask your adjuster and your attorney how the unpaid or unspent dwelling money is handled. The answer depends on your policy and your loan.
Public adjusters: Delaware's rules
A public adjuster is someone you hire to handle your claim for a percentage fee. The insurance company's adjuster works for the insurer; a public adjuster works for you.
Delaware regulates public adjusters under 18 Del. C. Ch. 17A:
- They must be licensed by the state.
- They must use a written contract.
- You may cancel the contract until midnight of the 3rd business day after signing.
- They cannot solicit you while the loss is happening, such as during the fire itself.
- Their fees are capped by statute.
Some homeowners find a public adjuster worth the fee on a large, complex claim. Others do fine working directly with the insurer. Either way, never sign anything at the curb the night of the fire, and verify any license with the Department of Insurance.
Sell before repairs, after, or in between?
There is no one right answer. It depends on your insurance payout, your energy, and your timeline.
| Approach | Pros | Cons |
|---|---|---|
| Repair fully, then list | Opens the house to financed buyers and full market value | Months of contractors, lender draws, and carrying costs |
| Partial cleanup, then sell | Removes the worst smell and debris; more buyers can look | You still spend money and time without full value |
| Sell as-is right away | Fast, no contractors, no draws to manage | Lower price; mostly cash buyers |
A fire-damaged house often cannot be financed with a standard mortgage until it is livable. That usually means an as-is sale goes to a cash buyer. If the damage is limited and the rest of the house is solid, Fix & List can be a middle path.
Disclosing fire and smoke damage
Delaware's seller disclosure form asks directly about fire, smoke, and flood damage. Under 6 Del. C. §2572, sellers must disclose known material defects in writing, and must update the disclosure through settlement if something changes.
That means you should share:
- What burned, and what was repaired or replaced.
- Whether any smoke or water damage from firefighting remains.
- Copies of the adjuster's estimate and repair invoices, if you have them.
Being open about the fire helps your sale. Buyers are more comfortable with a house when they understand exactly what happened, and a clear record of the repairs can ease worries about hidden smoke damage in walls and ductwork. Water from firefighting can also lead to mold if not dried fast; see our page on foundation and mold problems.
Carrying costs while you decide
A burned house still costs money every month. You may be paying the mortgage, property taxes, and insurance on a home you cannot live in, plus a hotel or rental while ALE lasts.
Keep an eye on:
- When your ALE coverage runs out.
- Whether your policy limits coverage once the home is vacant.
- Securing the property against weather, trespassers, and theft.
A house left empty and damaged can draw code complaints. In Wilmington, a long-vacant house may need to be registered. See selling a vacant house for details.
It helps to write a simple monthly budget: mortgage, taxes, insurance, utilities you must keep on, and your temporary housing. Then set a decision date. Many owners drift for months waiting for the "right" time, and the carrying costs quietly eat the equity they were trying to protect. A deadline, even a flexible one, keeps you in charge. Our net proceeds calculator can show what you would walk away with at different sale prices.
How we buy fire-damaged houses
Silverside Home Buyers buys fire-damaged houses across Delaware as-is. You can sell with debris inside, the roof tarped, and the claim still open. Your mortgage is paid off at settlement, like any sale.
- A cash offer so you can stop paying for a house you cannot live in.
- Fix & List if the damage is contained and the house would sell well after repairs.
Our price reflects the damage and will be below a repaired value. Keep your insurance claim going with your adjuster. Call (302) 798-8655 when you are ready.
General information, not legal or tax advice.
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Get My Written Offer Call (302) 798-8655Frequently asked questions
Can I sell my house after a fire before the insurance claim is settled?
Often yes, but talk to your adjuster and attorney first about how the remaining claim money is handled.
Why is my mortgage company on my insurance check?
Dwelling repair checks are usually made payable to both the homeowner and the lender, because the lender has an interest in the house.
Can I cancel a public adjuster contract in Delaware?
Yes. You may cancel until midnight of the 3rd business day after you sign.
Do I have to disclose a past fire when I sell?
Yes, if you know about it. Delaware's disclosure form asks specifically about fire and smoke damage.
Can a buyer get a mortgage on a fire-damaged house?
Usually not until it is repaired and livable, which is why most as-is buyers pay cash.
Who do I call with insurance questions in Delaware?
The Delaware Department of Insurance consumer line is (800) 282-8611.
Sources
- Insurance Information Institute: claims payment process
- 18 Del. C. Ch. 17A (public adjusters)
- 6 Del. C. Ch. 25, Subch. VII (seller disclosure)
General information, not legal, tax, or financial advice. Laws, fees, and schedules change. Confirm with the office named or your attorney.