foreclosure property insurance prior to getting the deed

[Dewayne E.]

Hello BP. I was the winning bidder on a courthouse steps foreclosure auction in NJ. Before I can get the deed of sale, I need to wait for motions to go through the court system and approve the sale. A formality, I'm told, but it could take weeks or months. In the meantime, court documents for this case state that the prior owner shall "take all reasonable steps" to maintain fire/casualty insurance on the property at their own expense. The property is vacant.

SO. I would like to protect myself in case the prior owner is not maintaining insurance (they are BK after all) between now and when I get the deed, in the event lighting strikes, there's a fire, a tree falls on the house etc. But insurance co's I speak to say they may deny a claim if something happens and I'm not the deedholder. 

Has anyone dealt with this type of situation? If so, how did you manage through this?

Thanks in advance...