What Happens to Homeowner's Insurance When a Person Dies?

A homeowners insurance policy safeguards a home by covering any damage or loss to the structure. Typically, the insurance policy includes liability coverage to safeguard against accidents or injuries on the property. When the insured homeowner dies, the estate executor is responsible for contacting the insurance company. The estate must then provide continued coverage, or a purchaser must arrange for insurance. Transferability of the original policy is not possible.

When a policyholder dies, the original policy ceases to be valid in its existing form. If the spouse of a deceased policyholder decides to continue the policy, the insurance company must rewrite it to reflect these changes.

Contact an Insurance Agent, the Insurance Company, or a Highly Skilled Insurance Attorney

Contact the business that owns the home's insurance coverage as soon as possible. Notify the homeowner's representative of his or her demise. The agent will request an email or fax copy of the deceased homeowner's death certificate. Some insurance firms may extend the coverage until it expires to give new homeowners time to purchase their policy, while others will only give them 30 days. Always enquire how much time you have to get a new policy to avoid a coverage lapse.

Named Insured

When a husband and wife are both named on a homeowner's insurance policy, and one spouse dies, the policy can be changed to cover only the remaining spouse. Certain firms will also allow for the rewriting of a policy for a spouse not listed on the policy, as long as the right documentation is supplied to establish ownership. This is the simplest way to keep coverage, and it is worth examining by contacting the insurance agent.

Solicit Coverage Throughout the Probate Process

If no surviving spouse is available to take over the insurance policy, the estate executor may request coverage for the residence throughout the probate process. If the home remains vacant during the process, the insurance provider may require the executor to acquire a vacant-home policy on the estate's behalf. During this time period, the mandatory premiums for the coverage must be paid on time. If you fall behind on a payment, the insurance company has the ability to cancel your policy.

Purchase a New Homeowners Policy

After probate is concluded and the home is awarded to an heir or sold, the new homeowner is responsible for notifying the insurance carrier of the change. If the new owner wishes to utilize that insurer, the insurance firm will cancel the previous policy and may issue a new one to the new owner. The new homeowner must submit proof of identity as well as information regarding the property, such as its condition and any repairs made to it. Naturally, the new owner has the option of shopping about for the best rates.