We sold our house and in lieu of us repairing the roof, we credited the buyers the amount insurance was paying. Insurance is requesting receipts before they will release the funds. But we’re not doing the repair we credited the buyers – what if the buyers don’t repair the roof? How do we get that money back or reimbursed from insurance.
This sounds like a tricky situation and the answer may depend on the specific terms in your insurance policy as well as the terms of the agreement you made with the house buyers. Hopefully you have a written agreement with them requiring repairs to be completed in return for the lower price. Your insurance company may have a good argument supporting their request to receive receipts before you are reimbursed.
You can seek help from the Office of Public Insurance Counsel (https://www.opic.texas.gov/residential-property-insurance/get-help/) to see if they can provide help.