In Re Foor

OPINION

LARRY L. LESSEN, Bankruptcy Judge.

The issue before the Court is whether a state court cause of action for termite damage to the Debtors' residence may be claimed as exempt pursuant to the Illinois homestead exemption, 735 ILCS 5/12-901.

The material facts are not in dispute. The Debtors, Robert and Mary Foor, purchased a home in Taylorville, Illinois in 1996. Norwest Mortgage, Inc. has a mortgage on the property, and the mortgage provides in pertinent part as follows:

5. Hazard or Property Insurance.... Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be…