Jane Dotson
Typically, homeowners insurance cannot be in someone else's name. However, there are circumstances where someone other than the homeowner can insure a house. For example, if you're in the process of buying a house, you'll need to take out buildings insurance by the time you exchange contracts. If you're renting, you may want to insure your contents, but buildings insurance is your landlord's responsibility. If a house is going through probate, it's the executor's job to sort out the coverage, and the policy will be in their name. You can also insure a house in someone else's name if you have a verifiable insurable interest in the property, but this is rare.
| Characteristics | Values |
|---|---|
| Can someone other than the homeowner insure a house? | Yes, but only under certain circumstances. |
| Circumstances | When the house is going through probate, when you're in the process of buying, or when you have a verifiable insurable interest in the property. |
| Insurable interest | Having a financial stake in the property, meaning you would suffer a financial loss if something happened to it. |
| Probate | When a house is in probate, the executor or someone else is typically the policyholder. Some companies offer specialist probate home insurance. |
| Buying a property | Your mortgage lender will require you to have buildings insurance by the time you exchange contracts. |
| Verifiable insurable interest | This rarely occurs and usually requires consent from the property owner. |
| Adding family members to insurance | Family members can be added to a homeowner's insurance policy if they live in the home, and this can provide additional protection in the case of a liability lawsuit. |
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What You'll Learn
Insuring a house in probate
Typically, you can only insure a house if you own it. However, there are some circumstances where you can insure a house that is not in your name. For instance, if you are in the process of buying the house, your mortgage lender will require you to have taken out buildings insurance by the time you exchange contracts.
If the house is in probate, the executor of the will is responsible for ensuring that the appropriate probate home insurance is in place. The executor will often make beneficiaries joint policyholders so that they can make any changes to the policy. The executor will need to prove they have an 'insurable interest' in the property, which means they have a financial stake in it and would suffer a financial loss if something happened to it.
The cost of probate insurance will depend on factors such as location, rebuild value, property security, and the level of cover chosen. The policy will usually be more expensive than traditional home insurance, as unoccupied properties are more vulnerable to break-ins, theft, and malicious damage. Probate insurance will also often require the executor to periodically inspect the property for damage and break-ins.
Once probate is complete and the beneficiary has become the legal owner of the house, the insurance policy can be transferred to their name.
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Buying home insurance for someone else
Typically, you can only insure a house if you own it. Most home insurance policies are bought by homeowners. However, there are a few situations when you can buy insurance for someone else's home.
If you are in the process of buying a home, your mortgage lender will require you to have buildings insurance by the time you exchange contracts. In this case, you can buy home insurance for a home that you do not yet own.
You can also buy home insurance for someone else if you have an 'insurable interest' in the property. This means that you would suffer a financial loss if something happened to the property or its contents. For example, if a family member owns a house, you may be able to transfer the home insurance policy to yourself if you are going to live in the house or if you are a surviving spouse.
If you are the executor of a will, you may be able to get the policy extended. Otherwise, you will need to take out specialist probate home insurance for the property until probate is complete.
In some cases, you may want to help someone else find the right home insurance cover, for example, if they are over 60 or are having money worries and cannot afford the premium.
Adding someone to your policy
If you own a home and want to add someone else to your policy, you can name other people on the deed as co-applicants so they can be joint policyholders. This is a common practice when family members are added to deeds. However, the person who wants the coverage will also need to be the property owner, so you would not be able to get a policy for someone else without your name also being on it.
If you own a home and let a family member live there while you reside elsewhere, your home insurance policy should be written as a dwelling fire insurance policy in your name. You can add your family member as an additional insured to the current insurance policy to protect them in the case of a liability lawsuit.
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Renters insurance
Typically, you can only insure a house if you own it. However, renters insurance is a way to get coverage on a property you don't own. Renters insurance protects tenants' contents and liability while excluding protection for the structure of the house. The landlord is responsible for insuring the physical structure of the house, usually with buildings insurance. However, their insurance won't protect the tenants' belongings.
You can also get special coverage for valuable items such as jewellery, which can be added on to your renters insurance policy.
While it is uncommon, there are some circumstances in which you can insure a house you don't own. This is when you have a verifiable insurable interest in the property, and your insurer allows it. Insurable interest means that you would suffer a financial loss if something happened to the property. For example, if a family member owns the house, you may be able to transfer the home insurance policy to yourself if you're going to live in the house or if you're a surviving spouse.
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Vacant home insurance
Typically, you can only insure a house if you own it. However, there are some circumstances where you can buy insurance for a house that you do not own. For instance, if you are in the process of buying a house, you will need to have buildings insurance by the time you exchange contracts.
If you are the beneficiary of a property, you will need to get a new insurance policy in your name. If the house is in probate, you may be able to transfer the home insurance policy to yourself, but you will need to provide a death certificate. Some insurers offer policies specifically for properties that are going through probate, although these are likely to be more expensive than traditional home insurance.
If you are the executor of a will, you may be able to get the policy extended, or you will need to take out specialist probate home insurance until probate is complete.
Some companies offer vacant home insurance as a separate policy, while others offer it as an add-on to a homeowners insurance policy. Big-name insurers like USAA, Farmers, and Progressive all offer vacant home insurance policies.
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Adding family members to deeds and insurance
Typically, homeowners insurance cannot be in someone else's name. However, there are a few ways to insure a house that is not in your name.
Insurable Interest
Firstly, you can insure a property you don't own but only if you have an 'insurable interest' in the property. This means that you would suffer a financial loss if something happened to the property or its contents. For example, if you are in the process of buying a property, you will need to have home insurance ready to start when you exchange contracts.
Renters Insurance
Secondly, renters insurance is a way to get coverage on a property you don't own. Renters insurance focuses on tenant contents and liability while excluding protection for the structure of the house.
If you want to insure a house your family member currently owns, you should try to get added to the house deed or title first. You can name other people on the deed as co-applicants so they can be joint policyholders. However, if you are the owner of the house and are letting a family member live in the home while you reside elsewhere, your family member will need a renter's insurance policy to cover their contents and liability. They should also be added as additional insured on your homeowner's insurance policy.
Probate
If a family member has passed away and left you their house, you may be able to transfer the home insurance policy from the deceased policyholder to yourself if you are going to live in the house. The insurance company will want a death certificate, usually within a month of the policyholder's passing. Several companies offer short-term probate home insurance, which is likely to be more expensive than traditional home insurance.
Vacant Home Insurance
If you don't plan to live in the house but will be keeping it, you may need to get a special policy called vacant and unoccupied home insurance. This type of insurance is also necessary if the house will be sitting vacant for a long time, such as if it's in probate or going to be sold.
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Frequently asked questions
It is uncommon, but you may be able to insure a house that is not in your name if you have a verifiable insurable interest in the property and your insurer allows it. Insurable interest means that you would suffer financial loss if something happened to the property or its contents.
If you are in the process of buying a property, you will need to take out buildings insurance by the time you exchange contracts. If you are renting, you may want to insure your contents. If you are inheriting a home, you will need to get a new policy in your name.
If you own a home but do not live in it, your insurance policy should be written as a dwelling fire insurance policy in your name. This insures the dwelling, outbuildings, and any contents that belong to you, and provides liability insurance coverage.
