Grand Rapids homeowner and real estate agent discussing insurance claim history at the kitchen table.

Do I Have to Disclose an Old Insurance Claim When Selling My Grand Rapids Home?

ByJason Pohlonski

When you’re getting ready to sell your Grand Rapids home, a lot of questions pop up—especially if you’ve had to file an insurance claim in the past. Maybe it was a roof leak years ago or water damage from a burst pipe, and now you’re wondering: Do you have to disclose that old claim to potential buyers? This is a common concern for local sellers, and understanding how disclosure and past claims work can help you avoid surprises, keep your deal on track, and maximize your sale price.

Quick Answer

In Michigan, sellers are required to disclose known material defects, but you are not automatically required to disclose every old insurance claim you’ve ever filed. However, if an old claim relates to a defect or damage that could still affect the home’s condition or insurability, it’s wise to address it upfront. Insurers and some buyers may learn about past claims through CLUE reports (Comprehensive Loss Underwriting Exchange), which can impact your sale even if you don’t mention them.

A proactive, transparent approach can help you avoid deal-killing surprises during the transaction. If you’re dealing with a past insurance claim and aren’t sure what to disclose, I’m happy to walk through it with you.

1. Deciding What to Disclose: Michigan’s Seller Disclosure Law

Michigan law requires sellers to complete a Seller’s Disclosure Statement, which asks about the condition of the property, including past water intrusion, roof leaks, or structural issues. While the form doesn’t specifically ask about insurance claims, it does require you to reveal known defects—even if they resulted in a previous claim. If the damage from an old claim was fully repaired and there’s been no recurrence, you can indicate that on your disclosure.

Jason’s take: If you’re unsure whether an old claim is relevant, ask yourself, “Would I want to know about this if I were buying?” If there’s any doubt, it’s usually safer to err on the side of transparency. For more on disclosure requirements, see the Michigan Seller’s Disclosure Statement and NAR guidelines.

2. Positioning Your Home: Proactive Documentation

If you had an insurance claim for something like a flooded basement, hail damage, or a fire, gather documentation that shows how the issue was fixed. Receipts, contractor invoices, and before/after photos can demonstrate that the problem was professionally addressed and is no longer a concern. This helps you present the home’s story accurately and confidently.

Jason’s take: I often advise sellers to include a summary sheet with the listing documents explaining what happened, what was repaired, and who did the work. This is especially helpful if your home’s CLUE report will show the claim anyway, which many buyers’ insurers check before closing.

3. Pricing and Market Response: Factoring in Past Claims

Sometimes a past claim—especially for water or fire—can raise questions for insurance underwriters or trigger higher premiums for a future policy. This might affect your home’s appeal if buyers see it as a risk or an added cost. If the market isn’t responding as expected, and feedback points to concerns about an old claim, you may need to address those worries in your marketing or adjust your pricing strategy to reflect any perceived risk.

Staying ahead of these concerns allows you to manage expectations and avoid last-minute renegotiations. If the listing isn’t generating activity, review both your disclosure approach and how you’re communicating repairs and upgrades made since the claim.

4. Negotiation and Closing: Avoiding Surprises

If a buyer’s insurance agent discovers a past claim that wasn’t disclosed or explained, it can lead to delays, new negotiations, or even a canceled deal. Being upfront helps prevent these surprises and builds trust throughout the transaction. If a claim might affect insurability or closing, address it early—before you’re under contract.

If a buyer’s lender or insurer requires additional documentation, be ready to provide repair invoices or inspection reports. This preparation can keep your closing on track and prevent your sale from falling apart late in the process.

Real Seller Case Study: Grand Rapids Seller Faces Old Water Claim

One Grand Rapids seller I worked with had a water claim from a burst pipe five years earlier. Although the home had no visible issues and the repairs were professionally completed, the seller was concerned about how this would affect the sale. We gathered all repair documentation, included a clear summary in the seller’s disclosure, and prepared to answer questions about the incident. During the transaction, the buyer’s insurance agent did find the old claim on the CLUE report, but because we had full documentation and a proactive disclosure, the sale stayed on track and closed smoothly—with no price reduction or closing delay. In this case, transparency and preparation made all the difference.

Grand Rapids Market Insight

Grand Rapids sellers are becoming increasingly proactive about disclosure and documentation, especially as more buyers and insurers access digital records of past claims. In today’s market, sellers who prepare clear records and address concerns early tend to experience fewer last-minute surprises and smoother closings.

Frequently Asked Questions About Selling in Grand Rapids

  • Do I have to disclose every old insurance claim when selling?
    No, but you must disclose any defects or damage that could still affect the home, even if there was a previous claim. Full transparency with documentation is best practice.
  • Can a buyer’s insurer see my home’s old claims?
    Yes. Insurers use CLUE reports to check a property’s claim history, which can influence their underwriting decisions. Learn more at CFPB: What is a CLUE report?.
  • Will an old claim affect my home’s value?
    It depends. If the repair was done well and there’s no ongoing issue, most buyers move forward. If concerns linger, you may need to adjust your pricing or provide additional documentation.
  • What if I’m not sure what to disclose?
    When in doubt, disclose and document. This builds trust and reduces the risk of deal disruption. Your agent can help you decide what’s relevant for your situation.

Related Resources

About the Author


Jason Pohlonski
 is a Michigan licensed real estate salesperson with Keller Williams Grand Rapids East. He helps buyers and sellers throughout Grand Rapids, East Grand Rapids, Forest Hills, Ada, Byron Center, Jenison, Cascade, and surrounding West Michigan communities.

Jason began his real estate career in Chicago in 2004, later expanding his experience in Ann Arbor from 2014 to 2019, and has been serving clients in the Grand Rapids area since 2019.

With over 20 years of combined real estate experience across multiple markets, Jason focuses on helping clients make clear real estate decisions involving pricing, offer terms, inspections, appraisals, relocation timing, and buy-sell planning.

Industry Recognition

Jason is recognized by platforms and industry organizations including Zillow, Grand Rapids Magazine Real Estate All-Stars, and Real Producers for his work serving West Michigan buyers and sellers.

Jason also supports One More Moment, a nonprofit that grants wishes to late-stage cancer patients, by donating $100 for every successful closing.

Professional Disclosure

Jason Pohlonski
Michigan Licensed Real Estate Salesperson
License Verification: Verify Michigan License #6501386166
Brokerage: Keller Williams Grand Rapids East
Brokerage Office: 1555 Arboretum Dr. SE, Grand Rapids, MI 49546

📱 Call or text: 616-916-9770
📅 Schedule consultation:
https://calendly.com/pohlonskirealestate/30min
📧 Email: jpohlonski@kw.com

This article reflects real client experiences and market conditions in Grand Rapids and surrounding communities at the time of publication. Real estate outcomes can vary depending on market conditions, property characteristics, buyer demand, financing terms, inspection results, appraisal results, and lender requirements.

This article is for general informational purposes only and is not legal, tax, financial, insurance, engineering, inspection, or floodplain determination advice. Buyers and sellers should consult qualified professionals before making decisions involving financing, insurance, inspections, taxes, legal issues, or property risk.

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