Insurance on home after winning auction but BEFORE getting deed?

[Jay G.]

In my area the county does not assign the tax deed to the auction winner until about 30 days after the sale.  They also do not let you collect rents, evict or basically look or think about the property after the sale & before you get the deed. If you do, they can cancel the sale.  They of course DO take your cash payment the day of the sale though ;) 

So what does this mean in terms of risk/liability? How could the soon-to-be deed holder but protect themselves in this period where you have paid for the deed, but not received ? 

I could see some risk if there are squatters, previous owners, "renters", etc. there that might be upset to learn the home was sold - perhaps even upset enough to trash it or burn it down during this period.  Going to ask my insurance agent tomorrow, but I doubt this is a very common problem that he runs across.