Surrendered House in Chapter 13 and they didn't file a claim. Insurance?????

[addisonsmom]

Do I still need to have homeowners insurance on this house, since we surrendered in the BK and no longer are living there?

[LadyInTheRed]

Until the bank forecloses and while your name is still on title, you can be held liable for injuries incurred by somebody on your property or injuries/damages caused by conditions on your property (a tree on your property falls and causes injury/damage on a neighbor's property, for example). It's a good idea to get liability insurance. The policy you had while living there may not cover you after you move out. So, call your insurance agent.

[addisonsmom]

Thanks! I just called my agent after your advice. They are looking into it. Since the mortgage company is still using the escrow, then they are thinking to leave it alone. The policy is paid up through next month. They said they will call me back.

[lookin4info]

We surrendered our home also and have moved. My son, who lived with us, still lives in the house and will until the bank tells him he has to go. Our homeowner's insurance canceled on us, and we were able to find an agent where we got renter's insurance for our apt. and my son could get renter's insurance in his name while he is at the house. He doesn't pay us rent, but he lives there in order to maintain the home, mow the grass, etc. in exchange for living there, so we don't have income from it. The agent said that was fine, and added us as additional insured. This way we are supposed to be covered for liabiltiy and person property. It does not include the dwelling, but the mortgage company has already told us they were going to put insurance on it, but it wouldn't cover personal loss. So I think we're covered ok. I hope this is all correct. Wanted to share if it helps anyone else, or find out if anyone has reason to believe it doesn't work.