If someone buys a storm damaged foreclosed home and the damaged was not repaired by the previous owner will the new owners insurance company insure the home with those existing damages?

Depends.... Depends on the scope of the damage. Usually if it's minor, the insurance company will insure, make note and ask that it be repaired asap. If the damage is substantial, most insurance companys will pass.

Suggest you get a local agent involved EARLY in the process to allow them time to inspect and work w/ the company underwriters to come to a decision.