Insuring A House In Probate

When a homeowner passes away, their home insurance policy does not automatically transfer to the inheritor of the house. This means that the inheritor will need to take out a new insurance policy on the house, which can be a probate home insurance policy if the house is in probate. Probate is a legal process that can take a long time, and during this time, the house may be left unoccupied and vulnerable to damage or criminal activity. Therefore, it is important to take out a probate home insurance policy to cover the cost of any damage that may occur during this period.

The insurance policy does not automatically transfer to the inheritor

When a house is in probate, it can take a long time for the home to be officially inherited. This means that the insurance policy of the deceased homeowner does not automatically transfer to the inheritor. The executor of the will must continue to pay the premium on the existing policy to avoid a lapse in coverage. However, the insurance company may eventually find out about the homeowner's death and cancel the policy. Therefore, it is important to notify the insurance company of the death as soon as possible, usually within 30 days, and to provide a copy of the death certificate.

The executor must also act to change the home insurance policy. The insurance company may give the executor a set amount of time to secure the appropriate homeowners insurance coverage in the future as a new policyholder. During this time, the executor must continue to pay the current premium to avoid a coverage lapse, which would leave the home uninsured. If the executor fails to do so, they may be held liable for any damage to the property.

In some cases, the insurance company may require a vacant property policy if the home is left unoccupied during the probate process. Vacant properties are at a higher risk of vandalism, theft, and damage due to lack of maintenance. As a result, unoccupied insurance policies can be quite expensive. However, there are insurance companies that offer temporary or short-term home insurance policies specifically for probate situations. These policies can be issued in the name of the estate's executor, with any beneficiaries named as additional policyholders.

The inheritor must notify the insurance company of the death

When a loved one passes away, it is important to notify their home insurance company of the death as soon as possible. Most insurance companies give at least 30 days for someone to notify them of the policyholder's death, and some policies may remain in effect for the remainder of the policy period. However, if the insurance company is not notified within their specified time frame, they will likely cancel the policy, and the home will be without coverage. Therefore, it is crucial to act quickly and contact the insurance company as soon as possible.

To notify the insurance company of the death, you will need to provide a copy of the death certificate, which can usually be sent via email or fax. It is also advisable to follow up with a phone call to clarify and understand your options for coverage during the "gap" period before the title can be officially transferred. This period could take several months, depending on the assets involved and the probate process. During this time, it is important to continue paying the insurance premiums to avoid a lapse in coverage.

If you are the surviving spouse, transferring the existing policy to your name may be a straightforward process, as you were likely already listed as a "'named insured' on the policy. In this case, the insurance company will remove the deceased and replace them with the surviving spouse as the new named insured. However, if you are not the spouse, you may need to take out a new insurance policy or be added as a named insured to the existing policy.

It is important to note that if the house is left vacant during the probate process, you may need to purchase additional coverage, such as vacant home insurance or unoccupied home insurance. Vacant homes are at a greater risk of vandalism and theft, and insurance companies may require this additional coverage to protect their interests.

The insurance company may leave the policy open until its expiration date

When a loved one passes away, their property is granted probate, and it's important to ensure that the deceased's estate is well cared for. This can be a lengthy legal process, and the property may remain empty for long periods. During this time, the home needs to be insured.

If you inherit a house, you do not automatically inherit the home insurance policy. The original policy will usually continue for a defined period after the homeowner's death, giving you time to find a new policy. This is typically until the policy's expiration date. However, it is important to read the policy carefully or contact the insurance company directly to confirm this.

Additionally, it is recommended to have the property inspected regularly and to take steps to prevent break-ins, such as installing burglar alarms or changing the locks. This can help you obtain a competitive quote for probate house insurance.

The inheritor may need to purchase a vacant-home policy

When a loved one passes away, their property often goes into probate, which can be a lengthy legal process. This can mean that the property remains empty for long periods of time. Vacant homes are considered a greater insurance risk for several reasons. Firstly, without someone there to watch over the property, it is more vulnerable to break-ins and vandalism. Secondly, issues such as water leaks or fires may go unnoticed and cause more damage than they would in an occupied home. For these reasons, some insurance companies will not cover vacant homes at all.

If the inherited home remains vacant for more than 30 days, the inheritor may need to purchase a vacant-home policy. This is because most standard home insurance policies will not cover damage if the cause can be attributed to the home being left empty for an extended period. Vacant-home insurance is a specialty type of coverage that protects homes that are uninhabited or considered vacant. This type of insurance can be more expensive than standard insurance, with costs around 50-60% higher for an annual plan.

When purchasing vacant-home insurance, it is important to be honest with the insurance company about the status of the property. The insurance provider will need to verify that the customer has an insurable interest in the property before providing cover. Once confirmed, the policy will usually be issued in the name of the executor with any beneficiaries named as additional policyholders. It is also important to note that vacant-home insurance covers the structure of the home, not the land or other assets. Coverage can include protection from fire, lightning, explosions, windstorms, hail, smoke, water intrusion, vandalism, and theft, although this may vary depending on the insurance provider.

The beneficiary is responsible for the right level of cover

If you are a beneficiary of a home asset, it is important to take the steps to understand the insurance policy and ensure the property is covered properly through the probate process.

As a beneficiary, you must make sure that the appropriate probate home insurance is in place. For instance, while in probate, the building should be protected by unoccupied house insurance. This is because the deceased's property will usually remain empty for an extended period, and most standard home insurance policies are voided if the home is unoccupied for a certain period.

The cost of probate house insurance will vary depending on factors such as location, rebuild value, property security, property maintenance, and the level of cover you choose.

If you are residing in the home you inherit at the time of the original owner's death, you may be able to continue under the existing policy. However, that must be verified with the insurance company. If you are planning on selling the house, you can check with the insurance company to keep the insurance in the deceased owner's name, but you will be responsible for covering premiums and ensuring the house is not vacant. Vacant homes pose an increased risk to insurers because there is no one around to report small problems that may grow into bigger issues over time.

If the inherited house remains vacant for more than 30 days, you may need to buy extra coverage. This is because most standard home insurance policies won't cover damage if the cause can be attributed to the fact that the home was left empty for an extended period.

Frequently asked questions