Insurance on Foreclosures

[James McGovern]

I am closing on a property sold via foreclosure auction in Connecticut where the tenant needs to be evicted by the State Marshal in the future. If the tenant causes damage to the property, does builders risk provide adequate coverage?

[Kerry Baird]

That's a good question. I'm not sure the answer.  I did a similar eviction and the tenant did damage.  Our choice was to repaint and put in new carpet to replace the new carpet they damaged.  It wasn't worth having a claim on our insurance record, and the deductible was not close.  

Did you call your insurance agent?  Have you gained possession of the house?