Dont understand the homeowners insurance issue when house is vacant...

[freshstartmi]

If you went through bankruptcy - the house was not reaffirmed - you are now foreclosing and moving out - how can the bank charge you anything? Didn't you wipe that debt clean? They can't add more to the debt if it was included? We are getting ready to leave our home in the next few months and I am sure it will be vacant for a bit before the bank takes it - this just doesn't make sense to me.

[BCA2009]

If you were discharged in BK, the bank can't charge you anything. You are no longer responsible for insuring the property against damage or for paying taxes. If the house burns down it is not your problem. In some states you may be liable for HOA fees until the deed is out of your name. And you may also beliable for injuries if someone "slips and falls" on your property before the deed is transferred.

Other than that tell the bank to pound sand.

[broken64]

Thanks BCA...very informative. I will make sure I notify BOA when we move out that I will be cancelling the insurance policy and then they can worry about it.

[Flamingo]

See my posting in response to a similar posting like yours in this forum as to having insurance on a house in the foreclosure process.

[MrsDixon]

What if someone hurts themselves on the property when the deed is still in your name and the bank hasn't transferred it back yet?

[Flamingo]

What if someone hurts themselves on the property when the deed is still in your name and the bank hasn't transferred it back yet?

You are responsible as the property is still in your name and transfer of title has not yet taken place...

[HHM]

Anything with insurance is about managing risk.

Must you maintain insurance on the home, NO. But, you should understand the risk you are taking by not doing so. The home is vacant, if something happens, a squatter moves in and hurts themselves, if the house catches fire and burns your house down along with your neighbors house...and you have no insurance, you are on the hook.

However, the odds of any of things happening are low, so you just need to balance your personal risk tolerance. If you feel the risk of anything happening does not justify the 700-1000 annual premium on homeowners insurance, then don't pay it.

[AngelinaCatHub]

For the month or two that it would take to get it out of your name, I would gladly pay the insurance. That amount of stress upon what you have already endured is not worth it. Pay the insurance. 'Hub

[helpmeout]

If you were discharged in BK, the bank can't charge you anything. You are no longer responsible for insuring the property against damage or for paying taxes.

You may want to consult with an attorney before canceling insurance.

While the bank can't collect on the debt, the bank most definitely can go after me for any damage to the house that insurance would have covered while the house is in my name. And that comes straight from my attorney.

And the only reason why you aren't liable for property taxes after the bankruptcy is discharges is because it attaches to the property, not the person.

[Flamingo]

Here is a scenario that may seem low risk to some but we all know how stuff happens at the worst possible time...say for instance you let your insurance lapse on the house. Some neighbor's kid found out the house was vacant and starts hanging out around the house or in the house and/or brings over other kids; one of the kids falls on the property getting hurt or a loose tree limb or something on the house falls and hits one of the kids. Or a real estate agent or other agent from anywhere viewing the property stumbles and falls on a loose floorboard and gets injured...most states have a two year statute of limitations to file a lawsuit for personal injuries. One may think they are scott free from being sued but the plaintiffs have a while before they can file a lawsuit against the owner personally. I think carrying insurance for the few necessary months it is needed well outweights the risk of any kind of lawsuit as we all know how kids invade vacant properties and we all know how stuff happens when least expected. It's a matter of risk...

[norcal]

I definitely agree with keeping the insurance. Our annual renewal was up in April and I just contacted our agent and explained that we were going to be moving soon and wanted to change the policy to monthly, as I expected to keep insurance on the property until the title changed hands. I did not go into any further detail, other than to also ask for a renter's insurance quote, as we were going to rent while exploring our options in the housing market.