They can sue you without being injured. As for the insurance part of the question, might be a better idea to check with your insurance agent, you may not have insurance if it is supposed to be owner occupied and you rent it out. Close doesn't get it these days.
If you are borrowing some of the purchase price make sure your lender is okay with a lease back, some loans donâ€™t allow it for a day much less 2 months. Non default foreclosures are not myths. Good luck,
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I answer questions about financing real estate based on my decades of experience dealing with mortgage underwriters. This answer is my personal opinion, has not been reviewed or approved by the company I work for. I do not offer legal or tax advice, if you need answers from an attorney or CPA find one knowledgeable in your local market.