Foreclosure & Insurance claim

[Account Closed]

Just a question here that crossed my mind in thinking about the damage that needs to be repaired on a house I bought from the sheriffs auction. I found out after I purchased this house that the pipes from the baseboard heating registers or the plumbing pipes, either one or both of these burst in March causing a lot of water damage to the house. Someone had cleaned up the water & removed the ceiling's drywall but there is a lot more to do to get it back to the way it was. My question was, will the previous owners/bank homeowners insurance cover something like that if it was still in force when it happened? I purchased it this month with the confirmation of sale next month. In talking to an insurance agent here, he informed me that the previous homeowners insurance should cover it because it goes back to whatever company was in place when it happened. I'm not sure if that works in this case because I bought the house "as is" but was unaware of what happened until after the purchase. Does anyone know?

Also does anyone have any suggestions on where to get insurance now that I've bought it. This agent also told me that very few companies cover homes in a fix & flip situation, especially if bought in the name of an LLC. HE said his doesn't.

[Wayne Brooks]

If there was insurance put in place by the bank, they'll get that check. They're surely not going to forward it to you. As for your own insurance, you need a Builders Risk Policy, they're fairly common.