When a homeowner passes away, the existing homeowners insurance policy doesn’t automatically end—but it does require swift action. The legal representative of the estate (often an executor or administrator) must act quickly to maintain coverage and avoid a lapse, especially during the probate or transfer process.
Immediate Steps to Ensure Insurance Coverage After a Homeowner’s Death
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Notify the Insurance Company Promptly
Reach out to the insurer as soon as possible—ideally within 30 days of the homeowner’s passing. Delays could result in cancellation of the policy or denial of future claims. -
Provide Required Documentation
The insurer will typically request a copy of the death certificate and the contact information of the estate’s legal representative. -
Continue Paying Premiums
To avoid coverage lapses, premiums should continue to be paid from the estate’s funds throughout the probate or transfer period. -
Secure the Property
If the home is vacant, it’s more vulnerable to risks such as vandalism or damage. The executor should ensure the property is locked, utilities remain on, and the home is regularly checked and maintained.
Insurance Coverage Based on Occupancy
The type of insurance coverage needed will change depending on who is living in—or not living in—the home:
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Surviving Spouse or Family Member
If someone was already living in the home and is listed on the policy, they may be able to be named the primary insured. The existing policy can often continue with minimal adjustments. -
Vacant Home
Standard homeowners policies may reduce or eliminate coverage for homes left vacant for more than 30 to 60 days. A specialized “vacant home” insurance policy may be needed to protect against risks like vandalism or undetected leaks. -
Property Being Sold or Rented
If the plan is to sell or lease the home, coverage must change. A rental property requires a different policy (such as a DP3 policy), and a policy for a home being sold can be canceled once the sale is finalized and the buyer obtains their own insurance.
Transferring Ownership
Homeowners insurance does not transfer to a new owner automatically—whether that’s an heir or a buyer. Once the property is legally transferred following probate, the new owner must secure a homeowners policy in their own name. The deceased owner’s policy will then be canceled, and any remaining unused premium may be refunded to the estate.
If you’re serving as an executor or handling the estate of a loved one, these insurance-related steps are just one part of a complex process. Working with an attorney can help ensure you’re meeting all legal obligations while protecting the value of the estate. Schedule your consultation today.