Does anyone know if you get refunded homeowner insurance money if your house is foreclosed on?

Question

Does anyone know if you get refunded homeowner insurance money if your house is foreclosed on?

Answer 1

Maybe.  Every situation is different.

See, if your premium is paid in full, for the year, as soon as the title of the house transfers from your name, you'd have to ask the insurance company to cancel your policy.  Then, you'd be entitled to any refund of overpayment, for the rest of the term.

But MOST of the time, when a house gets foreclosed upon, the mortgage isn't the ONLY thing that didn't get paid - the house insurance didn't get paid, either.  So there's no in force policy to cancel.

Answer 2

In the US the mortgage company cannot seize the homeowner's insurance refund, if you are entitled to one.  Once the foreclosure process is complete contact your agent to give them your new address (so they can mail you a refund if you're entitled to one) and cancel the policy.  If you or the mortgage company contact your agent or company to let them know that the foreclosure is ongoing, the company will cancel your insurance because the house is no longer owner occupied.  You don't want this to happen because you are still responsible for the house until the foreclosure/change of ownership to the bank is complete.  If possible wait until after the foreclosure is complete.

Answer 3

It is possible that you may be entitled to a pro rata return of your annual premium provided it is paid up in the first place.

For information: Pro rata is calculated as follows:

Premium £130 with 190 days left out of 365 so multiply the premium by the days left and divide by 365 which come to £67 +/-

Not all Insurers have the same rules so check and if you still do not know ask me again via this site and my profile

Answer 4

Here in Australia I would doubt it as banks go after anything they can

I refuse to use a bank!!!!!!