When the mortgage lending company I manage is in possession under power of sale, that's exactly the policy we purchase. For obvious reasons, it's much more expensive than a standard homeowner's policy.

Contact your mortgagee to be sure exactly what they require.

Can the policy be written as a secondary residence? I'm sure whatever company you have for insurance will require the primary residence as well. That may be an option though.

So the insurance company writes policies in both States?

Yes the company insures in both states, but does not sell vacant property insurance. To have the home insured as a rental or secondary residence, we would have to refinance and the costs alone would not benefit us since we are selling.

Why would you have to refinance? Is someone telling you that you'd have to do this and get a non owner occupied rate? Ask your agent if you can do the property as a secondary residence - vacation home which is not always occupied. Mortgage company doesn't need to know. They will inquire about the new policy and effective date but that shouldn't make a difference.