Skip to content
Home > Insurance Consideration for a House in Probate

Insurance Consideration for a House in Probate

An important obligation that executors must fulfill is to ensure that the estate of the deceased is adequately protected during administration of the estate until it can be transferred to beneficiaries. What is the process if the deceased’s estate includes assets? What is the most important aspect of home insurance? be? In short, very important. Relying on the existing insurance or not insuring assets correctly can result in serious consequences.

It is essential that the estate’s assets are secured. If an executor fails to take this step can be held personally accountable for any loss suffered by the estate, if they fail to provide the proper care by ensuring that the property was insured.

Practical steps

If you’ve been appointed as executor, and the estate contains the property (which is no longer occupied) you must:

Contact your current insurance company informing them about the new conditions and determine if the current policy offers adequate coverage.

If an estate contains the house that was later abandoned and vacant, the insurance policy and it is advisable to avoid taking a reliance on an existing policy. Although the deceased may have had sufficient insurance coverage for the house, when it is the property that is not occupied, insurance companies will insist that the policy be either revised or a new probate house insurance policy bought.

Take note of the coverage of any newly or amended policy

If an insurer does offer assurance, it’s highly likely that the cost will be greater. Additionally, it is possible that coverage will be limited. Insurance companies tend to limit the damage to property that is not occupied to damage that is caused by lightning, fire or aircraft, as well as explosions. What do you think this means to you? If your property was for instance, broken into or vandalised, your insurance would not be able to cover. In these circumstances as executor you could be held accountable for the costs of repairs or any change in the valuation of the property.

If the insurance company does offer complete coverage, they could make you subject to a string of conditions as executor. In most cases, insurers in exchange for complete coverage for properties that are not occupied will require regular (e.g. fortnightly) inspections. In the event of a failure to comply, it could cause the claim to be rejected. When the home is currently on the market, then the estate agent could assist you (for an additional fee, perhaps) however as the executor, you are responsible to make sure that the terms in the policy met by.

Any policy that is amended or new must be signed by an executor’s name. Being executors’ interests “noticed” doesn’t necessarily allow them to file an claim or get the benefits of any claim proceeds that are payable under the policy. It can only mean that they are informed if the insurance policy has been cancelled or expired.

Select the right insurance provider

It is important to consider the insurance company you choose to use and if they have knowledge with probate properties. Certain insurance companies specialize in probate insurance, and might have a better understanding of the duties of being an executor.

Be aware of (increased) premiums for insurance

When the estate’s funds are cash-limited it could cause problems with the payment of the premium. An insurance company that is specialist may permit an amount of time during which no unoccupancy terms will apply or permit delayed payment of the premium until the estate has funds available. the estate.

Do some sensible steps

The practical steps include Making sure that the house is secured by shutting off the unnecessary utility services; taking out valuable items for secure storage until they are distributed to beneficiaries, and keeping a log of the items; frequently making a visit to check on the property, and collecting the post (or request a trusted neighbor to monitor the property) Consider making sure that the lights (on schedule) and heating turned on during the winter seasons.
Get legal advice on the subject of the administration of your estate If you haven’t already done so.

Additional details

For more information about the topics covered on this blog you can contact us now.