Fire damage house deals and insurance

[Mike Flora]

If I buy a fire damage home and my seller had insurance is there any way I can have insurance cover any of the damages at all? Would save a ton of money on the deal. By law everyone is required to have fire insurance right? 

[Chanté Owens]

@Mike FloraIf the owner owned the house free and clear (meaning, no mortgage), and they had insurance; they wouldn't have to make the repairs if they didn't want too, because there would be no one else who has an interest in the property.

However, if there was a mortgage on the property, any proceeds from an insurance settlement would be made out in the homeowners AND the bank/financial institutions name. Anytime there is a claim presented for insurance payment they would send an adjuster out there to get an estimate of damages and then they'd (most likely) be working with whatever contractor(s) were hired out to complete the various repairs, as those people would want to get paid. 

I'm simplifying the claims process considerably; however, if there is a mortgagee, it would be difficult for that homeowner not to make the necessary repairs on the house. I'm not saying impossible, but difficult.