Homeowners Insurance (I know, I know...again)

[dasmom]

Moved out of house last month. Water damage was reported to me tonight by former neighbors who saw yard flooding with water that was coming from the house. Insurance policy is paid through April 2011. Water company is working on getting to main shut-off but having difficulty, so the flood continues. They will be excavating tonight.

House is in foreclosure, Chapter 7 should be discharged in early February if no objections from creditors. There were no objections at the 341 last month.

I certainly expect that the damage to the house would be covered by the policy that is still in force.

Am I right?

[nomore008]

I am not sure about the insurance covering the damage. However our situation may be just a bit different: We surrendered our house on the date of filing, September 17,, had the 341 on October 16 and moved out soon after. We were served NOD papers on the day we moved, and the house was going to be sold Dec. 14. My husband was so worried that something would happen to the house, we left the utilities on.
The mortgage company asked the court to hold us responsible for any decrease in value, (and I would assume any damage done to the house) from the time of NOD to the time they could sell the house. (The house had still not been sold), the court denied this request. (I found this out on pacer).

Anyway my point is that our attorney told my husband that if any damage were to occur to the house we would not be held responsible under the BK laws.

[MeLLE159]

Was your insurance company aware the home is vacant? That may be where your problem lies, but on the surface based on what you said it should be covered. However, typically there is a reduction in coverage charge for homeowners who don't notify there carrier the home is vacant and a loss occurs! Keep us posted

[Cherinfo]

My lawyer told me not to worry about insurance or taxes that the bank will put their own insurance in place to protect their interest.. She explained Since we were discharged they cannot get it from us. they just add it to the selling price amongst other charges when they foreclose.

However she did suggest that we pick up renter insurance to protect our own stuff in the event of fire. We are still in house.

[BKinVirginia]

I also got a letter today that boa will find an insurance policy or i get my own, i have not lived in the home for 2 years and home was discharged with ch 7 on sept 09. I thought i was free and clear already. Should i just ignore it? Can they come after me?