How does Bankruptcy affect HomeOwners Insurance?

Question

I am between bankruptcy and foreclosure. My "B" hearing was back in Oct 2007. My attorney told me to keep my homeowners insurance because until I moved I was still liable for any accident/injuries that occured. My question is what would happen if I needed to file a claim? How does my situation affect the payout of my insurance..

Answer 1

Your bankruptcy could affect the PRICE of your homeowners insurance since most insurance companies run a "credit score" and you bankruptcy will DEFINITELY affect your score.

As far as payment of claims - as long as policy is in force, you shouldn't have any problems.  It might take a little more investigation if your claim would appear "shady" but as lon g as your claims are "on the up and up", you shouldn't have any problems.

Good luck and do what your attorney says - that's why you pay him the big bucks.