What happens to Flood Insurance Check if you sell your house

[Xavier G.]

Here is the hypothetical situation:

Somebody's house flooded, they file a claim and then sell the house right away without doing any repairs. Do the sellers still get the full check from the insurance or do they lose some of that because they've already sold the house without doing any of the repairs.

When I had a (non-flood) claim before, the insurance would give me a first check for let's say 60-70% of the estimated repair amount and then would send me another check for the remainder of the amount once the work has been done. I have heard that some other insurance insist to pay the contractor directly (no money goes to the homeowner).

Based on that, I would assume the seller still get a partial check but not all of it but I'm not sure. What's your experience?

Could the seller assign the insurance claim to the buyer since the buyer is going to do the repairs? Doesn't sound possible but just wondering ...

Thanks!