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Lender-placed insurance, am I on the hook to pay it?

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    Lender-placed insurance, am I on the hook to pay it?

    So it is my understanding that once we vacate our house a few weeks, our insurance company will eventually drop our policy since the house will be vacant. Then at some point our lender will purchase their own policy to cover their interests, but I will still be liable if someone gets hurt on the property, etc. So if this is correct, and my mortgages were discharged and not reaffirmed as part of my Ch7 four years ago, can the lender come after me to pay for the lender-placed insurance?

    Also, I found a local insurance company that is willing to write me a personal liability policy only for $500\year, after explaining my situation. There is no dwelling or personal property coverage, which I am thinking is fine since the lender will have it's own policy in place to protect against things like vanadlism, theft, etc. And I will be out of the house so I will have no personal belongings in the house that I need to insure. Am I correct in my thinking?

    Thanks
    Filed Ch 7 - 07/10/08
    341 Meeting - 08/13/08
    DISCHARGED! - 10/15/08
    CLOSED - 10/20/08

    #2
    Get the personal liability because the house is still in your name. No, you are not liable to pay back the lender for it's insurance.
    Filed August 20 341 on September 23 Report of No Distribution - September 24 Case Discharged and Closed on November 23!!!

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      #3
      Originally posted by drowning123 View Post
      Get the personal liability because the house is still in your name. No, you are not liable to pay back the lender for it's insurance.
      This is true however things are changing. Here in FL I note many empty houses have a sign posted stating locks will be changed and insurance handled. I have not investigated this but if you can force them to get your name off of the place, that would be wise. Keys for deed perhaps? 'Hub
      If I knew it all, would I be here?? Hang in there = Retained attorney 8-06, Filed 12-28-07, Discharge 8-13-08, Finally CLOSED 11-3-09, 3-31-10 AP Dismissed, Informed by incompetent lawyer of CLOSED status, October 14, 2010.

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