At a glance

When a property owner dies, their home insurance policy needs updating to ensure continued coverage, as the property may become a higher risk if left unoccupied. The executor of the estate must inform the insurer of the owner's death and consider switching to unoccupied property insurance if the home will be vacant for an extended period. This is crucial to avoid gaps in coverage and address increased risks like storm damage or break-ins.

When a property owner passes away, the existing home insurance policy doesn’t suddenly become void but according to insurance experts, Everywhen, because the circumstances surrounding the property have changed, the policy will need to be updated to avoid leaving unexpected gaps in cover. Someone will need to act as a representative of the policyholder and contact the insurer to tell them about the owner’s death. The insurer can then talk them through the options and help keep the property properly protected.

James Cooper, Trading Director at Everywhen says: “The executor is legally responsible for managing the deceased person’s estate throughout the probate process, including any property that’s in the estate. Responsibilities may vary depending on the situation, but typically executors need to check if the existing insurance policy is still suitable and comply with any conditions that the insurer requires, if the property is going to be empty for any significant period.

“The executor must also make sure that the property has the appropriate insurance until it’s sold or ownership is transferred to the new owner.”

Inform the insurer of a property owner’s death

“It is important that the insurer is informed when a property owner dies. If nobody tells the insurer, there could be gaps in cover. For example, some policies include restrictions for certain risks if a property has been empty for a time. In the event of a claim, this oversight could affect cover or the outcome of a claim, depending on the policy terms and the circumstances at the time.”

While the legal matters are being resolved, many properties in probate are left unoccupied and may become a higher insurance risk. From an insurance point of view, an empty property is seen as a higher risk than an occupied home, as small problems can go unnoticed and become much bigger issues than they might’ve been. Issues such as leaks, storm damage, break-ins leading to burglary or vandalism can fly under the radar for weeks or even months if no-one is living there.

James Cooper continues: “There are insurance products, such as unoccupied property insurance* which are designed to protect buildings that are vacant for more than 30 days. The level of protection can vary between insurers and policies. Since these properties have increased risks, the cover tends to include issues like storm damage, fire, flooding, escape of water and property owners’ liability.

“Whoever is acting as the executor, it’s worth their speaking to the insurer about whether there should be a switch from standard home insurance to unoccupied property insurance. When taking out unoccupied home insurance, insurers tend to apply some conditions alongside the policy.”

These conditions and requirements can vary between insurers and policies but may include:

-         Inspections: Checking on the property regularly

-         Maintenance: The property must be kept in a good state of repair and any issues fixed promptly

-         Security: All doors and windows need to be locked at all times and alarm systems should be operating

-         Water: During the colder months, the water system may need to be drained or the heating kept on at a level that reduces the chance of frozen pipes

The time it takes for probate to be granted varies depending on how complex the estate is. Some estates can be resolved relatively quickly, while other more complicated cases can take much longer. In the UK, probate typically takes 6-12 months for simpler cases according to Hibberts Solicitors.** Typically, the cost of insuring the property is paid from the deceased person’s estate during probate, rather than by the executor personally.

James Cooper, Trading Director at Everywhen concludes: “Whatever the timescale involved in the granting of probate, it’s very important to make sure that the property has the right insurance based on its current circumstances and that the insurer is kept in the loop.”

Editorial insight

Practical issues around property ownership often come to the fore during probate, particularly where insurance is concerned. While the legal process can be lengthy, ensuring that the right cover is in place is an essential but sometimes overlooked responsibility for executors. Insurers are keen to remind representatives that simply maintaining the previous policy may not be sufficient, especially if the property will be unoccupied for any period.

This reminder is particularly timely given the number of homes that can remain empty for months while probate is resolved, exposing them to risks that standard home insurance may not cover. For those managing estates, the key message is the importance of early communication with insurers to prevent potential gaps in cover and to comply with policy conditions that could affect future claims.

Story ideas and journalist angles

Regulation

Legal Responsibilities of Executors in Managing Property Insurance

An examination of the legal obligations executors have in updating home insurance policies during probate, and the potential consequences of neglecting these duties.

Target audience politics-public-affairs Story potential 6/10 Consumer impact

The Overlooked Risks of Unoccupied Homes During Probate

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Target audience consumer-lifestyle Story potential 7/10