The town is like going under some zombie dieseas
Its an old movie from the 80s or early 90s
I don't remember much from it just that part

Sorry to say but that covers a wide range as Zombie films where very popular around that time.

The movie could possibly be "The Stand". There are no zombies and the reason the dad dies is because a deadly virus was accidentally released from a government lab. Molly Ringwald, Gary Sinese, Rob Lowe and quite a few well knowns are in the TV mini series from the early 90s. The book was written by Stephen King and the movie followed a few years later. There was a scene where Molly Ringwald was burying her dad. He had died from what some called "Captain Tripps" a plague that has wiped out almost everyone on earth.

Yeah it sounds like "the stand" good movie, book is even better

Stephen King is the "Sultan Of Scary Movies and Books". The movie "IT " and "Salems Lot" scared the devil out of me. What's really neat is; he usually makes a cameo appearance in the movies. For instance, "The Stand", "The Langoliers", "Silver Bullet". I wonder if there will be a movie about the ,"The Girl Who Loved Tom Gordon"? I think the little girl who starred in "My Sisters Keeper", would be great in that part.