What happens to home insurance when a property enters probate? Your key questions answered.

Managing a property during probate can be confusing. It's important to understand what happens to the existing home insurance policy and whether any changes are needed. Here, we've answered some frequently asked questions.

When a property owner passes away, the existing home insurance policy doesn’t suddenly become void. However, since the circumstances surrounding the property have changed, the policy will need to change in order to avoid unexpected gaps in cover.

Someone will need to act as a representative of the policyholder and contact their insurer to tell them about the death. The insurer will then talk them through the options and help keep the property protected.

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:

 Reach out to the insurer of the property as soon as possible to notify them of the death

Check if the existing insurance policy is still suitable

Comply with any conditions that the insurer puts in place if the property is empty for the time being

Make sure the property has the appropriate insurance until it’s sold or ownership is transferred to the new owner

If you’ve got any questions, your insurer will be able to help guide you through the process.

There’s lots of useful information on the GOV.UK website regarding the executor’s wider responsibilities following a death, including a step-by-step guide.

If nobody tells the insurer about the death, you could find that there are gaps in cover. For example, some policies include restrictions for certain risks if a property has been empty for a time. If you needed to make a claim, this oversight could result in the claim being denied.

While legal matters are being resolved, many properties going through probate are left unoccupied during the process.

From an insurance point of view, an empty property is seen as a higher risk than occupied homes as small problems can go unnoticed and become much bigger issues than they might’ve been had someone spotted it sooner.

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.

Unoccupied property insurance is designed to protect buildings that are vacant for over 30 days.

The level of protection can vary between insurers and policies. Because these properties have increased risks, the cover tends to include issues like storm damage, fire, flooding, escape of water and property owners’ liability.

If you’re acting as executor, it’s worth speaking to your insurer about whether you should switch from standard home insurance to unoccupied property insurance.

When you take out unoccupied home insurance, insurers tend to apply some conditions alongside the policy. These will vary between insurers but may include:

Inspections – You’ll be asked to check on the property regularly.

Maintenance – You’ll need to keep the property in a good state of repair and fix any issues promptly

Security – All doors and windows need to be locked at all times and alarm systems need to be activated

Water – During the colder months, you may need to drain the water system or keep the heating on at a certain level to reduce the chance of frozen pipes

It varies depending on how complex the estate is. Some estates can be resolved relatively quickly, which other more complicated cases can take much longer.

In the UK, probate typically takes 6-12 months for simpler cases according to Hibberts Solicitors.¹

Whatever the timescale, it’s important to make sure the property has the right insurance based on the current circumstances.

Typically, the cost of insuring the property is paid from the deceased person’s estate during probate, rather than by the executor personally.

We understand that the probate process can feel overwhelming, especially when you’re coping with the loss of a loved one. If you have any questions about home insurance during probate, speak to your usual adviser or find out more on our website.

Sources:

1. How Long Does Probate Take: A Comprehensive UK Guide

Consistent with our policy when giving comment and advice on a non-specific basis, we cannot assume legal responsibility for the accuracy of any particular statement. In the case of specific problems, we recommend that professional advice be sought.