So I have been diligently reading over the threads in this forum, hoping to find a concise answer to whether we should keep homeowner's insurance or not, and I see there is no one right answer unfortunately. 
We have just been discharged from our Ch7, and are about 7mo behind on mortgage payments to both our 1st and 2nd mortgage.
Our BK lawyer pretty much said it was up to us whether we wanted to keep paying HO insurance once we leave the property, but a couple of things are bothering me. I don't know if KY has any laws that keeps vacant homes from being covered, so who could I ask to find this out? Liability was another concern, and I see that getting a personal liability coverage may help cover us. My remaining concern is how are 'acts of god' or nature covered? Assuming we can't get HO due to it being vacant, what happens if a tornado comes along and destroys it? Will the bank's coverage pay to have it rebuilt? Or would the bank just clear the debris and never sell the land?
I'm just concerned about what happens if something makes the home uninhabitable, and then we are stuck with the deed in our name forever, thus destroying our chances of getting a conventional loan again. Should we keep some kind of insurance cover (if state laws allow it), to ensure the home could be rebuilt or fixed and made sellable?
Our current HO policy renews in July for the following year, and gets paid directly from our escrow account - which is currently $0. Should we stay here in the home until July (assuming the bank lets us) or does it really matter when we leave? We planned on moving out in the next month or so, and don't really want to change those plans. We'd rather just pack everything up and go, instead of waiting and rushing around to get it all done when the sheriff comes knocking.
We have just been discharged from our Ch7, and are about 7mo behind on mortgage payments to both our 1st and 2nd mortgage. Our BK lawyer pretty much said it was up to us whether we wanted to keep paying HO insurance once we leave the property, but a couple of things are bothering me. I don't know if KY has any laws that keeps vacant homes from being covered, so who could I ask to find this out? Liability was another concern, and I see that getting a personal liability coverage may help cover us. My remaining concern is how are 'acts of god' or nature covered? Assuming we can't get HO due to it being vacant, what happens if a tornado comes along and destroys it? Will the bank's coverage pay to have it rebuilt? Or would the bank just clear the debris and never sell the land?
I'm just concerned about what happens if something makes the home uninhabitable, and then we are stuck with the deed in our name forever, thus destroying our chances of getting a conventional loan again. Should we keep some kind of insurance cover (if state laws allow it), to ensure the home could be rebuilt or fixed and made sellable?
Our current HO policy renews in July for the following year, and gets paid directly from our escrow account - which is currently $0. Should we stay here in the home until July (assuming the bank lets us) or does it really matter when we leave? We planned on moving out in the next month or so, and don't really want to change those plans. We'd rather just pack everything up and go, instead of waiting and rushing around to get it all done when the sheriff comes knocking.
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