Should a seller maintain their homeowners’ insurance if remaining in the home for a period of time after closing?

The West Michigan Regional Forms Committee offers a Temporary Occupancy Addendum that addresses many of the issues that should be considered if the home will be occupied after closing by the seller. In regard to insurance, it says:  If the Property is destroyed by fire or other occurrence during the Temporary Occupancy Period, Seller shall bear the risk of loss to Seller’s personal property. Seller is advised to maintain insurance on Seller’s personal property. If the Property is no longer habitable, then the Temporary Occupancy Period shall immediately terminate and the Buyer shall not have any duty to repair the damage or restore the Property to enable continued occupancy. Seller shall provide proof of policy to the Buyer prior to the start of the Temporary Occupancy Period. Buyer shall obtain casualty insurance on the dwelling, as well as a liability policy.