From: "AllEmailDeletedImmediately" 
Newsgroups: misc.consumers.house
Subject: Re: Insurance claim paid, but damage not repaired question
Date: Tue, 05 Apr 2005 15:42:49 GMT


"KS"  wrote in message
news:425285e3$0$30514$2c56edd9@news.cablerocket.com...
> Our old garage suffered some storm damage in 2003. The insurance company
> totalled it and paid us the amount it was insured for. We patched the
> roof and the garage was perfectly usable. We haven't yet gotten around
> to rebuilding the garage, and now it looks like there is a divorce on
> the horizon. Neither one of us wants to keep the house so we will sell
> it. I can't image trying to rebuild the garage in the middle of getting
> a divorce, especially when we are selling the house.
>
> What happens in this situation? Who do we owe money back to for the
> money paid by the insurance company but never used to repair the damage?


i think there may be some irs tax issues.   if you didn't use the money to
rebuild the garage, it might be considered income, and taxable.   we had the
hw heater spew and had damage.   i recall something about having 2 or 3 yrs
to use the money to fix the problem or it would be considered income.  call
them.