Obtaining Insurance post Foreclosure Auction

[Jackie Gonzalez]

Hi all,

Not sure if this is a uniquely Florida question, but here in Florida you cannot obtain property insurance on a home until a four-point inspection is completed by an insurance company.  Then the inspector gives results to the insurer, they decide whether to cover it, and issue a policy a few days later.  

At a foreclosure auction sale, though, this is a challenge, because we don't have the ability to enter the property until after the title is issued (ten days post sale).  Which means even if you had an inspector there on that day, it would be a few days before you could get coverage (assuming there were no issues needing remedying first, like an old water heater, roof, etc.).  

So how do you all do it? Do you take the property without insurance and just hope nothing happens in those few days?  What if the home is homeowner occupied, and you must get a writ to kick them out (which could take a month to process). Are you uninsured that whole time? What if its a particularly hostile former homeowner who doesn't cooperate with anything?

If there is no solution other than "you take the risk", it seems this would be a death-toll to selling houses at auctions absent a huge bucket of cash to cover losses if they happen.  

Appreciate any advice.