Rental House Property Insurance Due

[UpsideDownMI]

Hi all. I plan on filing chapter 7 in May. I own a rental house that I do not want and will include in bk. The property insurance is due on 3/15. I do not plan on paying as I no longer wish to keep the house. My question is should I just not pay the premium or should I contact my agent and tell him to cancel the policy. I have other policies with him and do not wish to hurt my relationship with his company.

FYI, the house is vacant and I have not made a mortgage payment since November '08. Your thoughts are appreciatted.

[JoeBankrupt33]

I think I would cancel the policy. When you do, the mortage company will send you a letter demanding that you have insurance or they will put in place their own high priced policy. But, who really cares because it becomes part of the debt that you are getting rid of with the bankruptcy.

[StartingOver08]

If the house is vacant and you are surrendering, the lender will put force pay insurance on it and JoeBankrupt33 is right - it gets added to the debt in the BK. Once you cancel your insurance the force paid insurance is put on right away by the lender/servicer.