Agency Owner, The Thomas G Sheehan Agency, 27 Glen Road Sandy Hook, CT 06482
It would be very important to talk to your insurance professional about this. A foreclosure action may indeed be a trigger for your insurance company to take action to cancel your policy, especially if you leave your house vacant and unattended during the process. Your policy will tell you what actions may be taken.
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.
I'm not sure I would suggest simply cancelling your policy. If you no longer own your home, you no longer have an obligation to insure it, but don't forget your homeowner's policy also covers your personal property (which you would still own), additional living expense should your living quarters be damaged and untenable and personal liability coverage. If you are still living in the home or move into a rental, you should be able to amend your current coverage to cover your new living arrangements.
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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.