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If your home owners insurance is part of your mortgage payment and you stop paying your mortgage what happens to your insurance coverage?

In: Insurance, Homeowner's Insurance, Loans, Mortgages, Money Management [Edit categories]

Answer:

Once you have defaulted on your mortgage or have gone into foreclosure all your rights on the homeowners policy are null and void. all rights of recovery revert to the Mortgage company.

Basically you become uninsured and the mortgage company remains insured through the policy term.

Also if the policy gets cancelled due to the foreclosure any refunds belong to the mortgage company.

First answer by Insurance Plus. Last edit by Insurance Plus. Contributor trust: 615 [recommend contributor ]. Question popularity: 1 [recommend question].

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