Wholesaling Fire-Damaged Houses in Florida

The short answer

Can you wholesale a fire-damaged house in Florida?

Yes, the owner can sell a fire-damaged house as-is, often while the insurance claim is still open. Who keeps the claim money must be settled in writing before closing.

Fire deals turn on two questions: what the insurer will pay and who gets it. The mortgage lender is usually named on the check, so the payoff and the claim must line up. Agree in your contract whether the seller keeps the insurance proceeds or credits them to the buyer, and read our fire-damaged house guide for the details.

Florida also changed its insurance rules in recent years. Owners with policies issued since 2023 generally cannot assign their claim benefits to a contractor, and insurers face set deadlines to pay or deny claims. That means owners deal with the insurer directly, which many find exhausting. A clean sale lets them settle the claim, pay off the mortgage and walk away. See our guide to estimating repair costs to price the rebuild.

The opportunity

Why fire-damaged Florida houses create wholesale deals

A house fire turns a normal home into a project most buyers will not touch. Retail buyers cannot finance it, and owners rarely want to manage a rebuild while living somewhere else.

Lead sources

Where to find fire-damaged house leads in Florida

• Fire department incident logs. Many departments publish structure fire reports by address.
• Local news. House fires often make the local news within a day or two.
• Building permits. Fire repair and demolition permits show which houses are affected.
• Driving for dollars. Boarded windows and scorched rooflines are hard to miss. Our driving for dollars guide covers logging them.
• Restoration companies. Board-up and restoration crews meet owners first and sometimes refer them.

Your exit

Who buys fire-damaged houses in Florida

Experienced rehabbers and builders buy fire houses. Some will gut and rebuild, while others value the lot and existing permits. Give them the fire report, photos and any engineer’s notes.

Be clear about the claim. If the seller keeps the insurance money, your price must reflect the full rebuild cost. If proceeds go to the buyer, document it in the contract and the assignment.

Step by step

How to start wholesaling fire-damaged houses in Florida

1. Get the facts. Ask for the fire report, the claim number and the adjuster’s estimate.
2. Confirm the payoff. Request the mortgage payoff, since the lender is usually on the claim check.
3. Inspect safely. Walk the house only when it is safe, ideally with a contractor.
4. Price the rebuild. Use the ARV calculator and the MAO calculator with smoke, roof and electrical costs.
5. Decide the claim split. Write who keeps the insurance proceeds into the contract.
6. Sign and disclose. Sign with the owner and disclose in writing that you may assign.
7. Close through title. Close with an investor-friendly title company that understands claim proceeds.

A Tallahassee couple had a kitchen fire that spread smoke through the whole house. Months later, they were renting elsewhere and still arguing with the insurer over the remaining claim.

You reviewed the adjuster’s estimate, walked the house with a contractor and priced the rebuild at about $95,000. You agreed the sellers would keep the insurance money already paid and signed at $148,000 with a written assignment disclosure.

A builder paid $162,000 for the contract. Title paid off the mortgage, and the couple bought a new home with the sale money plus their claim payout.

Florida rules to know

Insurance claims and licensed repairs

Florida law sets deadlines for insurers to acknowledge, investigate and pay or deny property claims. Recent reforms also ended most assignment-of-benefits arrangements for new policies, so the owner controls the claim. Owners can hire a licensed public adjuster, whose fees are capped by law.

Repairs need building permits and licensed contractors, and unlicensed contracting is a crime in Florida. Buyers will ask whether the city has ordered the structure secured or demolished. Check our certificate of occupancy guide for what a rebuilt house needs before resale.

Learn it with a mentor

Price your first fire deal with us

Fire houses hide damage behind the smoke. Mentorship students send us photos and the adjuster’s estimate, and we help them build a rebuild budget buyers trust.

FAQ

Fire-Damaged Houses in Florida: common questions

Keep going

More Florida wholesaling guides

Read the full Florida wholesaling guide or pick another situation below.

Guides that go deeper