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Insurance on house we're leaving?

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    Insurance on house we're leaving?

    We filed Chapter 7 on December 15th. We will be surrendering the house. While I know that we could stay here until they kick us out, we decided not to. Our gas/electric alone has been $650 a month! We found a nice house for rent in a good neighborhood with an eventual option to buy that we just couldn't pass up. Everything else we had started to scan through was a poor neighborhood (we have a young child), too expensive, or would not allow us to keep our dogs, so we jumped on it & will be moving later this month.

    Because I needed renter's insurance because of the lease, the insurance company knows that I am moving out of the home & renter's insurance on a vacant home is quite expensive. Our attorney was of the mind that when we left we could turn the keys over and that would be the end of it. As of today, we will be missing our second payment and we had 2 mortgages on the house, so I know that it may take a bit of time for the foreclosure to happen.

    If my husband happens to find & keep a job, the money won't be an issue, but he has bipolar with a number of depressive episodes and has never held a job for more than a year because he just doesn't go in on those types of days. That plus his huge run-up of credit cards put us in bankruptcy in the first place. In the new house we can live on my salary but will not be able to handle an extra-large insurance payment. Is there a way to work around this or some company that has insurance for such a condition at a reasonable rate. We are not in a high crime area & I know our neighbors will keep an eye out as well. I know I need to keep insurance but I don't want to go into debt again on a home that I'm not keeping.

    #2
    As long as the house is in your names you are responsible for anything that can occur there. If someone falls and injures themselves in that house, you are responsible until the title changes. If the house should catch fire prior to title change, you are responsible. Before you do anything else, contact your Chapter 7 attorney and get advice on what you should do in this situation, or contact your insurance agent/company who has the insurance on the house.
    _________________________________________
    Filed 5 Year Chapter 13: April 2002
    Early Buy-Out: April 2006
    Discharge: August 2006

    "A credit card is a snake in your pocket"

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      #3
      I have been working with my insurance agent who wants an exact timeline as to how long we're supposed to try & insure it. Her comment to me was that the company doesn't insure houses that are vacant generally and to do so would be quite expensive. We've already signed the lease, so we're just going to have to find the money somewhere.

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        #4
        More than likely, the lender will insure the home if the insurance laspes and/or the home is vacant. If this is the case, you need not worry about having to repay that. These costs will be added to what you owed the lender and will be discharged in your BK.

        Stay on top of this though.
        Bankruptcy History:
        Chapter 7 filed - 10/12/2005 - Asset
        Discharged - 02/16/2006
        Case Closed - 11/08/2007

        A banker is a fellow who lends you his umbrella when the sun is shining and wants it back the minute it begins to rain ~ Mark Twain

        All suggestions are based on personal experience and research and SHOULD NOT be construed as legal advice as I am NOT an attorney. Always consult with competent counsel in your area with regards to your particular situation.

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