What Happens To Homeowners Insurance After Foreclosure? 
Insurance companies offer homeowners ' insurance policies to people who own and occupy their residence . Once foreclosure occurs , you may occupy your residence but you no longer own it . If you are allowed to remain in the home for a period of time , you may be able to contact your insurer , explain the circumstances and have your policy amended to a Tenant Homeowner form . Tenant homeowner policies are issued to people who occupy a residence but do n't own it . The coverage is similar to homeowners ' insurance except it does n't cover the structure . It covers certain damage to your personal property , additional living expenses you may incur should your home be damaged and your have to live in temporary quarters while it is being repaired and certain personal liability exposures . You may need to adjust the amount of insurance on your personal property be consistent with what it would cost you to replace all your personal things . If you move to a rented home or apartment , you may be able to amend your homeowners ' policy to a Tenant Homeowners ' form and amend the address to that of your new residence . 