Tax Deed- Homeowners Insurance

3 Replies

assuming the tax deed is worth more than raw land then you could put forced placed insurance on the property.

You would buy insurance on the structure not the deed.  I have spoken to several insurance companies and all say that if a property was lost at a tax sale and the former owner has a right of redemption, that is not an insurable interest.  To me that means that the buyer should put insurance on the property and the old owner should be told that he no longer has to pay insurance since he would not be paid if a claim is filed.