Help me understand how insurance works in a subject-to deal

[Eric Black]

We have been exploring purchasing a contract for a subject-to deal but haven't been able to understand one issue.

A few of the properties we have looked at the mortgage payment was PITI, which we understand.

Our question is, if the insurance policy is in the name of the original owner, how does that work when we purchase the property subject-to? We obviously need to have insurance on the property for liability. Once the bank finds out that the new insurance policy is not in the mortgage holders name, won't they call the loan due?

Anyone who can help me understand how this piece works I would be very grateful.

Thanks all.

Eric