When does risk of loss pass - Foreclosure auctions

[Aaron Franke]

I think this question is relevant given the impending Hurricane.  My question is: 

If a home is purchased at the foreclosure auction; when does risk of loss pass.   The certificate of sale isn't issued until 10 days after the funds have been issued, but not title.  It is my understanding that Risk of Loss passes a the time title is transferred?  in this scenario, the prior owner or bank would have risk of loss, and (assuming the bank carried an insurance policy) would be entitled to the insurance proceeds? 

Does this line of thinking make sense to anyone else? OR is everyone avoiding foreclosure sales for the next 7 days, because you cannot insure the property?