Firstly freelife are in administration, not liquidation. If Deloittes do not find a suitable buyer than they were go into liquidation.
Home indemnity insurance will cover the cost of what's left on the loans plus an extra $100 k. I'm not sure what exactly you're asking?! Maybe someone else can help you. I believe that in the meeting today from the 7th June you will need to take out your own contents insurance should you have not found a builder to take over...
I changed my front door lock the day after they went into administration...