Insuring A Deceased Person's Home

When a homeowner passes away, their house will likely become unoccupied while their estate is distributed according to their will. This period, known as probate, can be lengthy, and the property may remain empty for longer than the 30 days typically allowed on a standard home insurance policy. As a result, the executor of the deceased's will must arrange suitable insurance to protect the assets of the estate, including the property. This insurance is known as probate house insurance or unoccupied house insurance and is designed to cover the increased risks associated with empty properties, such as vandalism, theft, and environmental damage.

Probate house insurance

When a homeowner passes away, their house insurance doesn't automatically transfer to the beneficiary. The beneficiary will need to take out their own policy, and a standard homeowner's insurance policy is only applicable if they plan to move into the inherited house.

If the beneficiary doesn't plan to move into the property, they will need to take out a different type of insurance policy. In this case, they will likely need unoccupied property insurance, also known as probate house insurance.

To obtain probate house insurance, the executor or beneficiary will need to prove they have an 'insurable interest' in the property. Once confirmed, the policy will typically be issued in the name of the executor, with any beneficiaries named as additional policyholders.

It's important to note that unoccupied property insurance can be quite expensive, as insurers consider vacant properties to be high-risk. Additionally, the coverage period may be restricted to a few common risks or only cover incidents such as fire and liability to the public or domestic staff. Therefore, it's essential to carefully review the terms and conditions of the policy.

Unoccupied house insurance

When a person dies, their house is likely to become unoccupied, remaining empty throughout the probate period. During this time, the executor of the deceased's will has a duty to safeguard and protect the assets of the estate, including the property. Therefore, unoccupied house insurance is necessary.

Standard homeowners insurance policies typically do not cover vacant homes due to vacancy clauses, which restrict or exclude coverage on properties that have been vacant for a certain period, usually 30 to 60 days. Vacant homes are considered higher risk by insurance companies because they are more vulnerable to theft, vandalism, and other damage. As a result, unoccupied house insurance is typically more expensive than standard homeowners insurance, costing around 50% to 60% more on average.

When purchasing unoccupied house insurance, it is important to review the specific protections offered by the insurance company and the policy chosen. The duration of coverage can vary, with flexible terms ranging from three to 12 months, depending on the insurer. It is also essential to be aware of any restrictions or exclusions that may apply to the level of coverage, especially if the property remains unoccupied for an extended period.

Buildings insurance

When a homeowner passes away, their home insurance policy remains in effect. However, it can expire or be cancelled if no one makes the premium payments. It is important to notify the insurer of the death as soon as possible, as they will eventually need to know.

If the deceased was married, their spouse can be added to the policy and the insurance company will replace the deceased with the spouse as a named insured. If there is no surviving spouse, the estate executor is responsible for the home insurance policy and must act to change it. The executor must continue to pay the current premium or risk a coverage lapse, leaving the home uninsured.

The executor will need to contact the insurer to discuss the options for the transition to a new policy under a new policyholder. The deceased is likely to have had some form of insurance on the property, so it is a good idea to speak to the insurer before arranging anything else. The existing policy can usually be transferred into the names of executors until they have the grant of probate, although the policy may need to be amended if the property will be unoccupied during this period.

If the property is left unoccupied, it will need unoccupied house insurance to cover potential damage to the building. Standard home insurance policies will not provide cover if the property is empty for more than 30 days. Unoccupied properties are more vulnerable to break-ins, theft, or attempted theft than occupied properties. They are also more susceptible to issues such as malicious damage, escape of water, and disrepair.

Unoccupied property insurance can be purchased on a flexible, month-by-month basis. It includes buildings insurance, which protects the structure and fabric of the building itself.

Contents insurance

When a person dies, their house is likely to become unoccupied while the executors of their will apply for probate to dispose of their estate. The executor of the will has a duty to protect the assets of the deceased, including the property, so suitable insurance needs to be arranged during this period.

If the deceased lived with their spouse, the home insurance policy will typically remain in effect, with the spouse replacing the deceased as the named insured. However, the surviving spouse must contact the insurance company to confirm the change. Some insurers may also add a spouse to the policy if they were not listed previously. In any case, the insurance company will require documentation, including a death certificate, to adjust the policy.

If there is no surviving spouse, the executor of the will is responsible for the home insurance policy. They must act to change the policy, and the insurer may give them 30 days or the remainder of the policy to secure the appropriate coverage. During this time, the executor must continue to pay the current premium or risk a coverage lapse, leaving the home uninsured.

If the property is left empty, restrictions and exclusions may apply to the level of cover offered by standard home insurance. There is also a possibility that the policy could become invalidated. This is because an unoccupied property is exposed to greater risks than a lived-in property, including minor faults developing into serious problems if they are not spotted and addressed quickly, and the increased risk of unwanted attention from burglars, arsonists, squatters, vandals, and other intruders.

Therefore, unoccupied property insurance is often required to restore the protection that the building and its contents need. This includes contents insurance, which protects against the risks of theft, loss, or damage to the contents.

It is important to note that each insurance company has different terms and guidelines, so it is essential to communicate closely with the insurer to understand the options available during the probate process.

Public liability insurance

When a person dies, their house is likely to become unoccupied, especially if they lived alone. The property may remain empty throughout the probate period, during which the disposal of the home is determined according to the deceased's will.

The executor of the will has a duty to safeguard and protect the assets of the estate, including the property. Therefore, it is their responsibility to arrange suitable insurance during this period.

If the deceased's spouse is listed on the homeowners policy, the policy will typically remain in effect. The insurance company will remove the deceased and replace them with the spouse as the named insured. However, each insurer has different terms and guidelines, so it is up to the surviving spouse to confirm the change with the insurer.

If there is no surviving spouse, the executor must act to change the home insurance policy. The executor must continue to pay the current premium or risk a coverage lapse, leaving the home uninsured. During any gap while the estate is being transferred, an insurer might require a vacant property policy.

Unoccupied properties are exposed to greater risks than occupied homes. A minor fault, such as a leaking pipe, can develop into a serious problem if it is not addressed quickly. Empty properties also attract unwanted attention from burglars, arsonists, squatters, vandals, and other intruders.

The duration of probate is often indefinite and unpredictable, so unoccupied property insurance needs to be flexible. Short-term or temporary cover can be arranged and extended on a month-by-month basis, rather than paying for a full 12 months of cover.

Frequently asked questions