I have had 2 different home insurance companies and no one ever inspected my house. Of course, they have also never asked me if the electrical was grounded. They asked me stuff like if I had tile floors, a rottweiler, how close the fire department was. I can't imagine an insurer insuring a home that you are going to knock down, which I guess is why you are asking. Strange situation. I hope someone has an alternative solution for you. But I don't think the insurer would ever know you knocked the house down unless you told them or filed a claim.