Purchasing a Duplex with water damage/ Insurance company

[David Lyons]

Yesterday I accepted an offer on a duplex. I found out that under the kitchen sink,  there is water damage that extends to the middle of the kitchen (possibly a 4x4 area) in one of the units (the one I plan on living in). The current tenants are moving out and the owner is currently working with an insurance company. There was not anything disclosed in writing when purchasing. The closing process will begin this week. It is a 21 day close. The relator for the selling house said this will be discussed in the closing process. Besides the water damage, the kitchen is fair and could use some basic remodeling.

I am nervous about the logistics. ie: the insurance company drops the case because the owner is selling, the current seller keeps the money, the insurance company under values the real damage and the problem is bigger than anticipated.

Dose anyone have any advice on this?