After a House Fire (Phoenix: homeowners insurance, neighborhood, purchase)

[thegirlinaz]

Last night the house down the street from us went up in flames. The entire house is pretty much gone (including their two vehicles in the driveway).

Anyways, my question is what will happen to it? Right now they have boarded up the windows and fenced off the property. I know they will be investigating it for a while, but once that is done what is most commonly done to the house? There is no way the house is livable again.. so will they leave it fenced off for a long time? Will they bulldoze it and build another one?

I have never seen anything like this before and I am curious as to what will happen..

[azjack]

There really is no set answer. It is possible that the individual will re-build, but that will take some time. They may decide that it is not worth the cost/effort based on cost, insurance coverage, etc. In a relative's neighborhood in North Phoenix (mid-1980s built area), I remember a house that burned down in the early 2000s and it was surrounded by a chain-link fence for over 2 years. Eventually, it was replaced.

[blisterpeanuts]

It might also depend on their homeowners insurance. If they had replacement insurance then they would get enough out of it to literally rebuild the house. Otherwise, they might only get money for the current (pre-fire) value of the house. At least, that's my understanding based on the choices we were given (we went with replacement cost). Of course, replacement today might be cheaper than the purchase price a few years ago.

[wit-nit]

No matter what the insurance coverage is, if the house is over 50% destroyed it would be taken down to the foundation and made ready for rebuild.
Depending on insurance coverage and requirements will depend on when and how long it will be built.
If you're concerned about the ppty, then contact the owner or the city inspectors for information about what will happen and for how long. If it was arson then nothing may happen for years.

[thegirlinaz]

Originally Posted by nitram

If it was arson then nothing may happen for years.

That is what I am worried about. Many of us neighbors smelled gasoline a few hours before (I just figured it was a neighbor working on a car) and I guess some witnesses are saying that someone was running away from the house and got in a vehicle and drove off right before the explosion.. they are investigation, but I guess I will never find out what happened.

[MotleyCrew]

The home next to our daughter's caught on fire and almost gutted the home. It sat there for over a year before the insurance company settled with the owners.

[blisterpeanuts]

Originally Posted by thegirlinaz

That is what I am worried about. Many of us neighbors smelled gasoline a few hours before (I just figured it was a neighbor working on a car) and I guess some witnesses are saying that someone was running away from the house and got in a vehicle and drove off right before the explosion.. they are investigation, but I guess I will never find out what happened.

You have to hope and assume that insurance companies are very suspicious of convenient fires and will do their utmost to investigate using every means available.