The buyer's lender and insurer both want the same thing: certainty about what is being financed and insured. A claim still in adjustment, with no settlement letter or repair invoice on file, makes a new insurer hesitant to bind coverage, and a lender will not fund without proof of insurance in place for possession day.
Joel Dyck's approach is to get the claim documented before the home goes to market rather than after an offer arrives. A settlement letter, repair estimate and any completed work with receipts turn an open question into a closed one, which keeps a buyer's financing and insurance on schedule.
The safest order is disclosure first, documentation second, listing third, not the reverse. Get your hand-reviewed valuation from Joel Dyck.