If I’m in foreclosure do I have to keep the house insurance up to date?

UPDATED: Aug 31, 2011

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If I’m in foreclosure do I have to keep the house insurance up to date?

Asked on August 31, 2011 Illinois


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

If the home you presently own is distressed and is in default, you are under no obligation to keep the insurance in place and up to date. However from a liability standpoint for personal injuries (and resulting personal liability) as well as damages to the home, it is always prudent to keep your homeowner's insurance current.

If you let the insurance premiums for your distressed home lapse, the lender as a most likely named additional insured on the policy can elect under the terms of the recorded mortgage (or trust deed) to pay for any lapsed insurance to protect its security interest in the home.

If you cannot afford to keep insurance for your home in place, you need to call your lender right away about the situation so that it can cover your monthly insurance payments to protect its secured interests in your home.

Good luck.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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