Fire damaged houses???


Just was wondering if anybody has expeirence with fire damaged houses? I came across one and seems to be a grear deal.

Bid starts at 14k and a market vaule of 140k plus in a great neighborhood. structure of the house is still fine , but inside is terrible,

I would like to hear any experiences with these or things to avoid.

thanks rach

I’ve been trying to close on a fire-damaged house since December. I backed out this week because the bank selling me the house was taking waaaaaaaaay too long to make any decisions about selling it to me. Anyways, I learned a lot from this experience. What you need to be aware of is that if you plan on rehabbing it it will be near impossible to get HO insurance. Without HO insurance you can’t get a loan. Also, make sure you get a few worst-case scenario bids from contractors, because this project could easily go over budget and if you don’t have any reserves it could clean you out. How much damage was there to the structure? What about water damage? How much of the house was involved. If the house is a total loss and it would be cheaper to just demolish it, I would stay away from the deal. The house I was lookiing at was 1200 sq feet, only had 2 rooms that were affected, and bids were $48k. But it did burn a hole in the roof. I have contact info for some people that may be of help to you. Just be sure to factor in all costs. If this is your first deal, just be careful.

yes, this is my first deal. I t seems like a great profit, if goes accordingly. LOL …

Do I need to talk to my insurance agent about HO? What is impossible?

My contractor said around 50k to 60k. The house is going for 16k, plus I need carpet and put in a kitchen w/ appliances. plus the extras lights paint etc… what if i can get a friend to just straight loan me the money? (not holding my breath on that one)

I feel really good about this one. Maybe cause its my first and I just have alot of anticapation with it. Thanks for the help!!!

Hi Wicker2996,

In order to get a loan from a lender, you’ll have to have proof of HO insurance. The difficulty with this, is that insurance companies don’t want to insure a home that was just involved in a fire. It sucks, but I kind of understand where they’re coming from. It’s not a very profitable venture for them to insure a high risk home. Don’t go with the big names (Nationwide, Statefarm), go with the lesser known companies that are willing to take the risk. Make sure your contractor gives you a very detailed bid of all the anticipated repairs. Also, draft up a legally binding contract and have your contractor sign it before you give him any money. This will prevent you from getting jerked around by a potentially shady person.


I’m currenlty performing a Gut-rehab on a three unit property in Connecticut, and I’ve discovered that no insurnace ageny will issue homeowners insurance on a vacant, uninhabitable property.

However, most agents can get you a “builders risk” policy for the duration of the rehab, and please remember to personally verify the contractors liability insurance, as well as his coverage for his workers, should they be injured on your property.

I only warn you about this because a contactor gave me a bogus insurance certificate, when I insisted that he list me as a named insured on his policy.

Good luck and best wishes!