I own a home that is free and clear with no encumbrance. It is a rent house that I have property Ins. on it. It recently caught on fire whil...

Question

I own a home that is free and clear with no encumbrance. It is a rent house that I have property Ins. on it. It recently caught on fire while tennants occupied it. Tennants got out all safe. Damage estimated at $90k. If house is free and clear, must I use all funds in restoration of home? Can I Sell the home to an investor as-is and keep the Ins. Money?

Answer

I understand the insurance companies may pay you a lesser amount (assuming you may not repair) and if you start repairs they will increase the amount they pay for the repairs.