Insuring Your Inherited Home

Dealing with the death of a parent is an emotional and challenging time, and there are many practical issues that need to be addressed, including insurance for their home. The first step is to understand the probate process, which is the legal process of administering the deceased's estate, including their property. During probate, the executor of the will is responsible for safeguarding the assets of the estate, which includes arranging adequate insurance for the property. This is important as standard home insurance policies may become void or reduce coverage if a property is left unoccupied for an extended period, typically more than 30 consecutive days.

To ensure continued insurance coverage, the executor must notify the current home insurer of the death as soon as possible and may need to provide a copy of the death certificate. The existing policy can usually be transferred into the executor's name until probate is granted, after which the beneficiary can insure the property in their name. It is important to maintain the property's security and habitability during this period to meet the conditions of the insurance policy and reduce the risk of damage or loss.

Contact the current home insurance provider

Contacting the current home insurance provider is a crucial step when dealing with the insurance of a property after the owner's death. Here are some detailed instructions and considerations to keep in mind:

Notify the Insurance Company:

It is essential to inform the current home insurance company about the homeowner's death as soon as possible. This step ensures that the insurance provider is aware of the change in circumstances and can provide guidance on the next steps. Some companies may have specific requirements or deadlines for such notifications, so it's important to act promptly.

Provide Necessary Documentation:

The insurance company may request a copy of the death certificate or other relevant documents. It's important to have these readily available and provide them to the insurer upon request. This documentation helps the insurance company update their records and make any necessary adjustments to the policy.

Understand the Existing Policy:

Before making any decisions, it's crucial to understand the terms and conditions of the current home insurance policy. Review the policy documents to determine what coverage is provided and whether there are any specific requirements or restrictions, especially regarding vacant or unoccupied properties. Understanding the existing policy will help you make informed decisions about any necessary changes or updates.

Discuss Options with the Insurer:

Once the insurance company is notified, discuss the available options with them. In some cases, they may allow the current policy to remain in effect until its expiration date. However, it's important to note that each insurance company has its own policies and guidelines. They may require adjustments to the policy, add specific conditions, or even offer a new insurance policy better suited to the situation.

Consider Probate and Executor Responsibilities:

If the property enters probate, which is the legal process of administering the deceased's estate, the executor of the will is responsible for managing the property. The executor must ensure that the property is adequately insured during this period. In some cases, the existing policy can be transferred or amended to the executor's name until the probate process is complete.

Be Mindful of Time Sensitivity:

Keep in mind that insurance companies may impose time restrictions. Some policies may only provide coverage for a vacant property for a limited period, typically 30 to 60 consecutive days. After this period, the insurance company may require a different type of insurance, such as unoccupied property insurance or a vacant property policy, to ensure continued protection for the building and its contents.

Probate home insurance

Probate is the legal process of administering the estate of a deceased person, including their assets such as property, money, and possessions, collectively known as their estate, which need to be distributed as described in their will or according to the laws of intestacy if there is no valid will.

The deceased is likely to have had some form of insurance on the property already, so it’s a good idea to speak to the insurer before arranging anything else. The deceased's 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. Once the estate has been finalised, the beneficiary (new owner) can insure it in their name.

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 and water damage, and can quickly fall into disrepair if they are not maintained and looked after properly.

When taking out probate home insurance, you will need to consider both buildings insurance and contents insurance. Buildings insurance will protect the structure and fabric of the building itself, while contents insurance will protect against the risks of theft, loss, or damage to the contents. You may also want to consider public liability insurance, which will provide indemnity against claims from visitors, neighbours, or members of the public who suffer injury or damage to their property through contact with the deceased's empty property.

Unoccupied property insurance

When a homeowner passes away, their house is likely to become unoccupied. During the probate period, the executor(s) of the deceased must safeguard and protect the assets of the estate, including the property. Therefore, adequate insurance needs to be arranged.

If the deceased's spouse is still living, it may be possible to transfer the existing home insurance into their name. However, insurers often require a new insurance policy. Even if a simple transfer is made, further considerations must be taken into account if the property will be left unoccupied during probate.

Standard home insurance policies typically do not cover unoccupied properties. Once a property has been empty for a certain number of consecutive days, restrictions and exclusions apply to the level of cover offered. Some insurers may impose restrictions after 60 days, while others will restrict cover after 30 to 45 consecutive days. This is because unoccupied properties are exposed to greater risks than occupied homes, including:

• Increased susceptibility to minor faults developing into serious incidents due to a lack of timely spotting and intervention.
• Higher risk of unwanted attention from burglars, arsonists, squatters, vandals, and other intruders.
• Buildings insurance: This covers the structure and fabric of the building itself, protecting it from potential damage.
• Contents insurance: This covers the contents of the property, protecting them from theft, loss, or damage.
• Public liability insurance: This provides indemnity against claims from visitors, neighbours, or members of the public who suffer injuries or damage to their property through contact with the empty property.

The duration of unoccupied property insurance can be flexible, reflecting the indefinite nature of the probate process. Short-term or temporary cover can often be arranged and extended on a month-by-month basis, rather than paying for a full 12 months of cover.

Tips for Insuring an Empty House

• Regular inspections of the property are usually required, with the frequency depending on the conditions set by the insurer.
• Insurers may require certain security measures, such as approved types of door and window locks.
• Informing neighbours that the property is vacant can help deter suspicious activity and ensure someone is keeping an eye on the property.
• The house should be insured in the name of the estate, such as 'The Executors of [Deceased Name]'.
• Ensure that any contents cover is appropriate and covers high-value items such as art or jewellery.

Once the probate process is complete and the estate has been distributed, the beneficiary will need to either transfer the current policy into their name or cancel it and take out a new policy. If the property remains unoccupied, they should consider unoccupied property insurance. If they plan to move into the property, a standard home insurance policy is more appropriate.

Home insurance during probate

When a homeowner passes away, their home insurance policy is still in effect. However, it can expire or be cancelled if no one makes the premium payments. Therefore, it is important to notify the insurance company of the death as soon as possible, usually within 30 days, by sending a copy of the death certificate.

Executor's Responsibility

If there is no surviving spouse, the executor of the deceased's estate 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.

Transferring the Policy

The insurance will usually be transferred to a live-in spouse, as they are typically listed on the policy. However, if there is no spouse, the executor must notify the insurance company and may need to arrange a new insurance policy. The deceased's existing policy can often be transferred into the executor's name until probate is granted.

Unoccupied Property

If the property is left unoccupied during probate, the executor will need to arrange unoccupied property insurance, as standard home insurance policies do not provide cover if the property is empty for more than 30 consecutive days. This type of insurance covers the building and contents, as well as public liability insurance.

Duration of Cover

Unoccupied property insurance is typically flexible and can be arranged on a short-term or temporary basis, rather than requiring a full 12 months of cover.

Financial Responsibilities

In addition to insurance, the executor will have other financial obligations, such as ensuring utility bills are paid and unnecessary contracts are cancelled.

Tips for Insuring an Empty House

• Conduct regular inspections of the property as required by the insurer.
• Install approved types of door and window locks.
• Inform the neighbours that the property is vacant so they can keep an eye out for any suspicious activity.
• Ensure any contents cover is appropriate, especially for high-value items.
• Once probate is complete and the property has a new owner, transfer the policy into their name or take out a new one.

Notify the insurance company

When a homeowner passes away, their home insurance policy remains in effect, but it can expire or be cancelled if no one makes the premium payments. Therefore, it's important to notify the insurance company as soon as possible. Here are some detailed steps to guide you through the process of notifying the insurance company:

Contact the Insurance Company:

Get in touch with the insurance company as soon as possible. This is crucial to ensure continuous coverage and to avoid any issues with the policy. Provide them with the details of the policyholder's passing, and be prepared to submit a copy of the death certificate. The insurance company may have specific requirements or forms that need to be completed.

Understand the Policy Status:

Find out if the policy will remain in effect or if any changes need to be made. In some cases, the insurance company may simply require updating the policy information, especially if the surviving spouse is listed on the policy. If there is no surviving spouse or other family member listed, the executor of the estate becomes responsible for the policy.

Provide Necessary Documentation:

The insurance company may require certain documents to adjust the policy or transfer it to a new policyholder. This could include a death certificate, letter of administration, or other relevant legal documents. Gather and submit these documents promptly to ensure a smooth transition.

Confirm the Coverage Period:

Ask the insurance company about the remaining duration of the current policy. Find out if there are any upcoming payments due to ensure continuous coverage. Understanding the timeline will help you make informed decisions about the next steps in managing the property's insurance.

Review the Policy Details:

Request a copy of the current policy and review it thoroughly. Understand what the policy covers, including any exclusions or limitations. This information will be crucial when deciding whether to maintain the existing policy or explore other options.

Maintain Timely Payments:

To keep the policy active, it's essential to make timely premium payments. Inquire about the payment methods and ensure that the necessary arrangements are made. Keep in mind that insurance companies may have specific requirements for payment frequency and can cancel the policy if payments are missed.

Explore Alternative Options:

If the existing policy does not meet your needs or if there are concerns about coverage, consider alternative options. You can research other insurance providers and compare their rates and offerings. However, be mindful that switching insurance companies may involve additional steps and considerations.

Remember, each insurance company may have slightly different procedures and requirements, so it's always best to contact them directly and follow their specific instructions. These steps will help you navigate the process of notifying the insurance company and ensuring continuous coverage for the property during this difficult time.

Frequently asked questions