What Happens To Homeowners Insurance During Foreclosure? 
A home that has been foreclosed on would constitute a change of title/ownership . Thus , the homeowners insurance policy would be null and void ; homeowners insurance policies define the dwelling as the titled owner 's primary residence . Once title has been transferred , the homeowners insurance policy is literally useless ! The insured should contact the insurance company , cancel the policy and request the return of any unearned premium . 