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When you’re involved in a car accident, figuring out who was at fault can be an important part of the insurance process. But in a no-fault insurance state, the rules work differently. Your own insurance generally helps cover medical expenses after an accident, regardless of who caused it.

Understanding what “no-fault insurance state” means — and what no-fault insurance does and doesn’t cover — can help you know what to expect if you’re injured in a crash.

What Is a No-Fault Insurance State?

In a no-fault auto insurance state, drivers must buy no-fault insurance. This means that after a car accident, they will generally need to turn to their own auto insurance coverage for medical expenses, regardless of who caused the crash. In no-fault states, this coverage is typically provided through personal injury protection (PIP).

PIP is a type of auto insurance that can help pay for medical expenses that result from the accident. Depending on your policy and the state you live in, PIP may also cover other expenses, such as lost wages and services that perform tasks you no longer can because of injury.

No-fault insurance typically limits your ability to sue the parties who were at fault in the accident to seek compensation for your injuries. States have differing rules about when you can pursue a claim against another driver.

Recommended: How Does Car Insurance Work?

List of No-Fault Insurance States

There are 12 no-fault insurance states. These include:

•   Florida

•   Hawaii

•   Kansas

•   Kentucky

•   Massachusetts

•   Michigan

•   Minnesota

•   New Jersey

•   New York

•   North Dakota

•   Pennsylvania

•   Utah

Keep in mind that specific no-fault laws and insurance requirements vary among these states. There are also some states that allow drivers to choose between no-fault and traditional auto insurance coverage, including Kentucky, New Jersey, and Pennsylvania..

What Are Add-On and Choice No-Fault States?

In some states, you can choose to add PIP coverage to your traditional car insurance for extra protection. If you do add it to your policy, your own insurance will pay for your medical bills if you’re injured in an accident regardless of who is at fault. This coverage is optional in most states, but mandatory in others.

Choice no-fault insurance gives drivers the option of choosing between a no-fault auto policy and a traditional auto insurance policy. This option is only offered in some states, such as Kentucky, New Jersey, and Pennsylvania.

With a traditional auto insurance policy, if you cause an accident, your liability insurance will pay for the medical bills of other people you injured. If you’re injured in an accident that you cause, you’ll typically turn to your own insurance to cover your medical bills.

Recommended: How Much Does Car Insurance Cost?

How Do No-Fault Insurance Claims Work?

In a no-fault state, each driver is responsible for filing a claim directly with their own insurance company regardless of who caused the crash.

The process typically begins when you report the accident to your insurer. You may then file a PIP claim and provide information about your injuries and medical treatment. Your insurer may also ask you to provide a statement or undergo a medical examination as part of the claims process.

No-fault coverage generally applies to injuries and related expenses. It doesn’t typically cover damage to your vehicle or other property. Property damage is usually handled separately through the at-fault driver’s liability coverage or your own collision coverage, depending on the circumstances and your policy.

Some drivers will have uninsured motorist coverage that helps shield them from the cost of damage caused by someone without insurance. This coverage can cover costs that PIP may not.

Recommended: Auto Insurance Terms

Pros and Cons of No-Fault Insurance

As with any insurance product, there are benefits and drawbacks to consider.

One of the major pros of no-fault coverage is that medical claims tend to be paid out more quickly since fault does not need to be determined first. No-fault policies also discourage lawsuits in which the injured party seeks damages against the other driver. And finally, PIP insurance can help cover other costs beyond medical bills, such as lost wages or household services you may need after an injury.

There are also downsides. No-fault coverage can be more expensive, although premiums are influenced by many factors. In addition, the restrictions on lawsuits can limit your ability to seek compensation from an at-fault driver unless your injuries or losses meet requirements established by your state.

Recommended: How Much Car Insurance Do You Need?

Is Insurance More Expensive in No-Fault States?

Generally speaking, the cost of insurance in no-fault states can be more expensive than in other states. There are a few possible reasons for this.

For one, your medical claims are always paid, regardless of fault, and that fact potentially puts insurance companies on the hook to cover costs more often. When insurance companies take on more risk, they typically pass that cost on to the consumer.

Additionally, it’s possible that there are more incidents of fraud in no-fault states, which drives up the amount insurance companies pay. These costs, again, tend to be passed on to consumers in the form of higher premiums.

However, it’s important to remember that no-fault status is only one factor affecting the cost of auto insurance. Rates can vary significantly even among drivers in the same state depending on vehicle, coverage limits, driving record, and claims history.

The Takeaway

No-fault insurance changes how medical expenses are handled after a car accident. Instead of waiting for fault to be determined, you generally turn to your own PIP coverage for eligible medical and related expenses. No-fault coverage typically doesn’t pay for damage to your vehicle, and state rules determine when you can pursue a claim against another driver.

Understanding your state’s requirements and the coverage included in your policy can help you know how much car insurance you need and what to expect if you’re involved in an accident.

When you’re ready to shop for auto insurance, SoFi can help. Our online auto insurance comparison tool lets you see quotes from a network of top insurance providers within minutes, saving you time and hassle.

SoFi brings you real rates, with no bait and switch.

FAQ

What does it mean if a state has no-fault insurance?

No-fault insurance means that if you’re in an accident, regardless of who is at fault, you’ll generally file a claim with your own insurance to cover your medical bills.

Who pays for damages in a no-fault insurance state?

With no-fault insurance, medical bills and related costs are paid for by your own insurance. If you don’t have no-fault insurance, damage to your vehicle is paid for by the damage liability insurance of the driver who is at fault. When you are at fault, your own collision insurance will pay for the cost of damage to your vehicle after you meet your deductible.

Can you sue another driver in a no-fault insurance state?

You may sue in a no-fault insurance state if your financial loss or injuries surpass certain state-set limits. The monetary threshold varies from state to state, but it’s typically about $1,000. This threshold applies only to bills that you actually paid. Serious injury generally includes fractures and bone breaks, permanent disability, significant disfigurement, or the loss of a body part.

What is the difference between no-fault and at-fault insurance?

With no-fault insurance, regardless of who caused the accident, you would make a claim with your own insurance company to have medical costs covered. At-fault insurance requires knowing who is at fault for causing the accident. This person is on the hook to cover the injured party’s medical bills through their liability insurance.

Does no-fault insurance cover damage to your car?

No-fault insurance does not cover damage to your car. If you are not at fault in the accident, damage is covered by the damage liability insurance of the person who was at fault. If you are at fault, your own collision coverage will cover the damage.

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Photo credit: iStock/Daisy-Daisy

This content is for educational and informational purposes only. The products, services, or features discussed may not currently be available via the SoFi platform. Any references to third-party products, services, or companies do not constitute an endorsement, recommendation, or solicitation by SoFi. Readers should independently evaluate their options and consider their individual financial needs and circumstances before making any decisions. ©2026 SoFi Technologies, Inc. All rights reserved.

SoFi Insurance Agency, LLC ("SoFi Agency"), doing business in the state of California as Social Finance Insurance Agency, is a licensed independent insurance agency and affiliate of SoFi Technologies, Inc. and SoFi Bank, N.A. SoFi Agency is compensated via commission or referral fee by its insurance carriers and other related service providers. Not all carriers or options in the marketplace are shown. SoFi Agency and its affiliates do not guarantee the services of any insurance carriers or other related service providers. California Entity License Number: 0L13077, Resident License No. 762363. See all licenses.

How SoFi Agency Is Compensated:
There is no charge to use SoFi Agency. However, we receive compensation from insurers and other vendors in the following ways:

● Commissions: A fee paid by the insurer for originating your policy, typically calculated as a percentage of your premium.
● Contingent & Supplemental Commissions: Performance-based bonuses from insurers for hitting annual targets, like customer volume or retention. (Supplemental commissions are based on past performance and known in advance; contingent commissions are not).
● Marketing Fees: Compensation for presenting promotions or linking you to an insurer’s application site.
● Affinity Partner Revenue: Income earned when you engage with or request services from third-party partners advertising on our platform.

If you have any questions about how we are compensated, please feel free to reach out to SoFi Agency.

All insurance products shown on SoFi are underwritten and provided by licensed insurance carriers, not SoFi Agency. SoFi Agency does not underwrite or price insurance policies. Insurance products presented may not be available in all states, and your rates and savings will vary based on individual factors. The rates or savings advertised are not necessarily available from all providers or advertisers. Not all carriers or options in the marketplace are shown.

SOPRO-Q326-034

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When something goes wrong in your home, you may wonder whether your insurance will help cover the damage. The answer often depends on the peril that caused the problem. But what does peril mean when it comes to insurance? Knowing which events your policy covers — and which it excludes — can help you better understand your coverage and what to expect if you need to file a claim.

Peril Definition in Insurance

A peril, as defined in homeowners insurance or rental insurance, is an event or circumstance that can cause damage or loss to your property or personal belongings.

The perils covered by your policy depend on the type of policy and its specific terms and exclusions. Understanding what your policy covers when you’re buying homeowners insurance can help you know what to expect if your home or belongings are damaged.

Named Perils vs Open Perils Policies

What does homeowners insurance cover when it comes to peril? Insurance policies often take one of two approaches to defining covered perils: named perils policies or open perils policies.

With a named perils policy, the policy specifically lists the events it covers. If a covered peril causes damage, you may be able to file a claim, subject to the policy’s terms, limits, and deductible. Damage caused by a peril that isn’t listed generally isn’t covered.

An open perils policy takes a broader approach. It generally covers damage from any peril unless that peril is specifically excluded. This doesn’t necessarily mean every type of damage is covered, so it’s important to review the policy’s exclusions and other limitations.

Recommended: Homeowners Insurance Glossary

Peril vs Hazard: What’s the Difference?

Although the terms “peril” and “hazard” are sometimes used interchangeably in everyday conversation, they have different meanings in insurance.

A peril is something that causes damage or loss. A fire can be a peril, as can a storm.

Hazards don’t cause damage directly. Rather they are situations that increase the likelihood of damage or loss. For example, a dead tree near your house could be considered a hazard because it may fall on the building. Clogged gutters or missing shingles on your roof might increase the chance of a leak. A swimming pool or hot tub might raise the risk of personal injury.

It’s important to be aware that the term “hazard insurance” is also different from a hazard. It refers to the portion of your homeowners insurance that covers the structure of your home and additional structures on your property. Homeowners insurance as a whole also includes coverage for things like liability and personal belongings.

Common Examples of Insurance Perils

Common perils often include weather events and natural disasters beyond human control. They may also include things like theft and vandalism

Common perils and the related losses and damages that may be covered include:

•   Fire and lightning: Losses resulting from fire, smoke, or a lightning strike

•   Wind and hail: Property damage caused by strong winds, tornadoes, or hail

•   Theft and vandalism: Stolen personal property or damage caused intentionally by others

•   Falling objects: Damage that occurs when trees, branches, or other objects fall onto the home

•   Ice, snow, and sleet: Damage to the home resulting from the weight of accumulated ice, snow, or sleet

•   Explosions and vehicle impacts: Property damage resulting from an explosion or a vehicle striking the home

•   Accidental water damage: Sudden and accidental overflow of water from plumbing, heating, or air-conditioning systems that doesn’t result from a lack of maintenance

It’s important to keep in mind that policies vary. And not every peril is covered by a standard homeowners or renters insurance policy.

For example, flood and earthquake damage are often excluded and may require separate flood insurance and earthquake coverage. Policies may also exclude damage caused by normal wear and tear or a lack of maintenance.

Because coverage varies, it’s important to check your specific policy to understand exactly which perils are covered, which are excluded, and whether additional insurance may be needed.

Recommended: HO-3 vs HO-6 Insurance

How Covered Perils Affect Your Insurance Claim

Your insurance will typically only pay for claims that are made against perils that are specifically named or unexcluded, depending on what type of policy you have.

With a named perils policy, the cause of the loss generally must appear on the policy’s list of covered perils. If a covered event causes damage, the policy may pay for the loss after applying the deductible and other applicable terms.

With an open perils policy, coverage generally applies unless the cause of the loss is specifically excluded.

The Takeaway

A peril is an event that can cause damage or loss, such as a fire, theft, windstorm, or falling tree. Knowing which perils a policy covers can help you decide what kind of policy you need and understand when your insurance may pay a claim.

When you’re ready to shop for auto insurance, SoFi can help. Our online auto insurance comparison tool lets you see quotes from a network of top insurance providers within minutes, saving you time and hassle.

SoFi brings you real rates, with no bait and switch.

FAQ

What is an example of a peril in insurance?

A peril is an event or circumstance that causes damage or loss to your property. For instance, depending on the policy, a tree branch that falls on your house and damages your roof may be a peril. An act of vandalism that causes a broken window could also be a peril.

Is fire considered a peril or a hazard?

A fire that actually burns your home and causes damage or loss is a peril. However, there may be hazards that can increase the chances of damage by fire, such as frayed electrical wiring or poorly maintained fireplace.

What does it mean if a policy covers “all perils”?

If a policy covers all perils, it’s likely an open policy. This means that it will cover perils that are not specifically excluded by the policy. Floods and earthquakes are common exclusions to open policies.

Does homeowners insurance cover every type of peril?

No, homeowners insurance does not cover every type of peril. Floods, earthquakes, damage by insects, and sewer backups are all examples of perils that typically aren’t covered.

What is the difference between a peril and a risk in insurance?

A peril is a specific event that causes damage or loss. A risk is the chance or probability that something bad will happen and cause a monetary loss. For instance, some houses in the U.S. are in areas that are prone to wildfire, putting the house at greater risk. If the house burns, the fire itself is the peril.

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Photo credit: iStock/Hirurg

This content is for educational and informational purposes only. The products, services, or features discussed may not currently be available via the SoFi platform. Any references to third-party products, services, or companies do not constitute an endorsement, recommendation, or solicitation by SoFi. Readers should independently evaluate their options and consider their individual financial needs and circumstances before making any decisions. ©2026 SoFi Technologies, Inc. All rights reserved.

INSURANCE PRODUCTS ARE NOT FDIC INSURED • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY • NOT A DEPOSIT OR OTHER OBLIGATION OF, OR GUARANTEED BY SOFI BANK, N.A. OR ANY OF ITS AFFILIATES

SoFi Insurance Agency, LLC ("SoFi Agency"), doing business in the state of California as Social Finance Insurance Agency, is a licensed independent insurance agency and affiliate of SoFi Technologies, Inc. and SoFi Bank, N.A. SoFi Agency is compensated via commission or referral fee by its insurance carriers and other related service providers. Not all carriers or options in the marketplace are shown. SoFi Agency and its affiliates do not guarantee the services of any insurance carriers or other related service providers. California Entity License Number: 0L13077, Resident License No. 762363. See all licenses.

How SoFi Agency Is Compensated:
There is no charge to use SoFi Agency. However, we receive compensation from insurers and other vendors in the following ways:

● Commissions: A fee paid by the insurer for originating your policy, typically calculated as a percentage of your premium.
● Contingent & Supplemental Commissions: Performance-based bonuses from insurers for hitting annual targets, like customer volume or retention. (Supplemental commissions are based on past performance and known in advance; contingent commissions are not).
● Marketing Fees: Compensation for presenting promotions or linking you to an insurer’s application site.
● Affinity Partner Revenue: Income earned when you engage with or request services from third-party partners advertising on our platform.

If you have any questions about how we are compensated, please feel free to reach out to SoFi Agency.

All insurance products shown on SoFi are underwritten and provided by licensed insurance carriers, not SoFi Agency. SoFi Agency does not underwrite or price insurance policies. Insurance products presented may not be available in all states, and your rates and savings will vary based on individual factors. The rates or savings advertised are not necessarily available from all providers or advertisers. Not all carriers or options in the marketplace are shown.

SOPRO-Q326-035

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Older homes can possess charm and personality, but they can also come with challenges. Some of the things that make older homes unique may also make them more difficult to insure, which can lead to higher homeowners insurance rates.

Finding out how much homeowners insurance costs may be trickier for older homes. And it’s possible you’ll need a specialized policy for your older home.

Why Are Older Homes More Expensive to Insure?

Homeowners insurance for older homes can be more expensive to insure because insurers view older homes as high-risk. Older structures have seen more wear and tear and are therefore more likely to cause problems. Also, the cost of rebuilding an older home can be higher than its market value, especially if the materials used are no longer available or aren’t up to code.

Key Factors That Affect Insurance Costs for Older Homes

There are several factors that affect insurance costs for older homes. Roof age and materials, electrical systems, and plumbing systems are three key factors.

Roof Age and Materials

An older roof may be less likely to withstand damage. The materials that were used to construct the roof in an older home may also cause concern, as the materials used years ago were heavier and less durable than those used today. Depending on the age and roof material, the property may need a full roof replacement to be eligible for insurance coverage. However, it is important to understand the answer to the question does homeowners insurance cover roof leaks. Not all roof leaks may be covered under homeowners insurance, regardless of the structure’s age.

Electrical Systems

Older homes with original electrical systems are at a higher risk of fire or other issues. Electrical codes are more strict now than they were a few decades ago. To be eligible for coverage, some insurance companies may require you to have your electrical system professionally decommissioned and a new system installed before they will insure your home.

Plumbing Systems

Older plumbing systems may have materials that are less durable or have just become worn out over time. These older materials could be more susceptible to leaks, blockages, and burst pipes. It is important to understand does homeowners insurance cover plumbing issues and water damage.

What Is an HO-8 Policy and When Do You Need One?

Standard homeowners insurance policies include HO-2, HO-3, and HO-5 policies. An HO-8 policy is a modified homeowners insurance policy version that provides coverage for homeowners who are unable to get an HO-3 policy for their older home. This is typically for homes that are more than 40 years old.

It is important to note that HO-8 policies don’t operate on replacement cost; the insurance company will pay out based on actual cash value, deducting for depreciation in your claim payout. This will mean you will have to cover the remaining amount of damage on your own.

A HO-8 policy will cover the insured’s dwelling, personal property, liability, and loss of use against the most common perils, including wind, smoke, hail, aircraft, vehicles, volcanic eruption, explosion, vandalism, theft, or riot. However, an HO-8 policy will not cover as much as an HO-3 or HO-5 policy will cover. An HO-8 policy will not cover perils including earthquake, flood or water damage, falling objects, hurricanes, mold, intentional damage, building code enforcement, general wear and tear, vandalism to vacant dwellings or government actions.

If your home is historic or would otherwise be too expensive to replace, a modified HO-8 insurance policy could be a good fit for you, but you should shop around before changing homeowners insurance .

Additional Coverages to Consider for an Older Home

If you are looking for additional coverage for your older home, you could consider high-value homeowners insurance. This will cover rebuilding high-value historic properties following a disaster. You could also look into are home warranties worth it, which would cover repairs or replacements of appliances and systems due to normal wear and tear.

There are also additional coverage policies that you could possibly purchase for an additional cost, such as home renovation coverage, service lines coverage, hidden water damage coverage, roof replacement coverage or loss of use/ additional living expense coverage. Of course, these additional coverages come at a cost, so you should consider cost vs. coverage.

How to Lower Homeowners Insurance Costs on an Older Home

Fortunately, there are ways to lower your homeowners insurance costs if you have an older home. One option is to bundle your homeowners insurance with another policy, like auto insurance. Some companies offer discounts for bundling. Another option is to increase your dwelling coverage or personal coverage deductibles, if possible. You could also look at adding a security system, which may make you eligible for a discount. Upgrading your home’s wiring and/or replacing your roof may lower your homeowners insurance cost as well.

The Takeaway

All homeowners should have homeowners insurance. If you have an older home, it could be especially important to have homeowners insurance due to the inherent risks that come with this property. This is the case even though homeowners insurance for older homes is often more costly and difficult to obtain.

When you’re ready to shop for homeowners insurance, SoFi can help. Our online homeowners insurance comparison tool lets you see quotes from a network of top insurance providers within minutes, saving you time and hassle.

SoFi brings you real rates, with no bait and switch.

FAQ

At what age is a home considered old for insurance purposes?

Some insurance companies consider homes built more than 40 years ago to be old for insurance purposes.

Can you get standard homeowners insurance on an older home?

Older homes often require specialized homeowners insurance due to higher risks and replacement costs. They may have outdated plumbing, electrical wiring, roofing, and building materials, which can increase the likelihood of damage or costly repairs.

Does updating your roof or wiring lower insurance rates on an older home?

Yes, updating your roof and wiring can lower insurance rates on an older home. However, the size of the discount depends on the insurance company, the home’s location, and the specific improvements that are made.

What is ordinance or law coverage and do older homes need it?

Ordinance or law coverage is part of a homeowners insurance policy that pays for the extra cost of bringing a home up to current building codes, ordinances, or laws after a covered loss. Older homes are more likely to need it because they were built under less strict building codes.

Are older homes harder to insure than newer homes?

Yes, older homes are generally harder and more costly to insure than newer homes. This is due to factors like higher replacement costs, outdated systems, and greater risk profiles.

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Photo credit: iStock/Mableen

INSURANCE PRODUCTS ARE NOT FDIC INSURED • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY • NOT A DEPOSIT OR OTHER OBLIGATION OF, OR GUARANTEED BY SOFI BANK, N.A. OR ANY OF ITS AFFILIATES

SoFi Insurance Agency, LLC ("SoFi Agency"), doing business in the state of California as Social Finance Insurance Agency, is a licensed independent insurance agency and affiliate of SoFi Technologies, Inc. and SoFi Bank, N.A. SoFi Agency is compensated via commission or referral fee by its insurance carriers and other related service providers. Not all carriers or options in the marketplace are shown. SoFi Agency and its affiliates do not guarantee the services of any insurance carriers or other related service providers. California Entity License Number: 0L13077, Resident License No. 762363. See all licenses.

How SoFi Agency Is Compensated:
There is no charge to use SoFi Agency. However, we receive compensation from insurers and other vendors in the following ways:

● Commissions: A fee paid by the insurer for originating your policy, typically calculated as a percentage of your premium.
● Contingent & Supplemental Commissions: Performance-based bonuses from insurers for hitting annual targets, like customer volume or retention. (Supplemental commissions are based on past performance and known in advance; contingent commissions are not).
● Marketing Fees: Compensation for presenting promotions or linking you to an insurer’s application site.
● Affinity Partner Revenue: Income earned when you engage with or request services from third-party partners advertising on our platform.

If you have any questions about how we are compensated, please feel free to reach out to SoFi Agency.

All insurance products shown on SoFi are underwritten and provided by licensed insurance carriers, not SoFi Agency. SoFi Agency does not underwrite or price insurance policies. Insurance products presented may not be available in all states, and your rates and savings will vary based on individual factors. The rates or savings advertised are not necessarily available from all providers or advertisers. Not all carriers or options in the marketplace are shown.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

This content is for educational and informational purposes only. The products, services, or features discussed may not currently be available via the SoFi platform. Any references to third-party products, services, or companies do not constitute an endorsement, recommendation, or solicitation by SoFi. Readers should independently evaluate their options and consider their individual financial needs and circumstances before making any decisions. ©2026 SoFi Technologies, Inc. All rights reserved.

SOPRO-Q326-040

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When a homeowner dies, the insurance policy they purchased to protect their property doesn’t automatically transfer to the person who inherits the home.

There may be a grace period during which coverage continues, but how long that period lasts—or if it applies at all—can vary significantly depending on the insurer, the inheritor, and several other factors.

Which is why it can be critical to keep the insurer in the loop as you move forward after a loved one’s death. Whether you’re a surviving spouse, other beneficiary, or executor, your contact with the company can help with navigating your next steps and understanding coverage options.

Keep in mind that you may be on a tight timeline while getting things in order—often just a few weeks. So the more you can do in advance to understand and manage the transition, the better. Read on for a look at what can affect homeowners insurance after an owner dies, and what you can do to help ensure you have the coverage you need.

Does Homeowners Insurance Stay Active After an Owner Dies?

If the premiums are paid, an insurer may keep the current policy active for a limited time, but that grace period won’t be indefinite.

Most insurers will wait at least 30 days for formal notification using a death certificate, will, etc., for documentation. But making phone contact as soon as possible after the death can help with understanding the transfer process and keeping things on track.

Insurers may have different requirements and transfer procedures depending on who is receiving the home, if the home is part of an estate in probate, and/or if the inheritor will be living in the home—so it can be useful to share those details with your contact. And if there’s an executor for the policyholder’s estate, that person should be involved in any decisions regarding homeowners insurance.

What Happens to Home Insurance When a Spouse Dies?

Homeowners coverage generally can transfer directly to a live-in spouse whose name is on the policy.

The insurer will likely request documentation that shows the death occurred, but a spouse typically can expect the policy to be updated and continued, as long as the premiums are paid.

If for some reason the surviving spouse isn’t listed on the policy, the insurance company may simply update the policy to reflect the change. Or, if there are complications or questions about ownership, an estate attorney or executor may have to be involved.

Whatever the circumstances, it’s best not to assume that coverage will continue. The insurer should be informed of the death as soon as possible to avoid any issues or potential cancellation.

Recommended: What Is Life Insurance?

Who Is Responsible for Home Insurance During Probate?

Things may get more complicated if a family member or other beneficiary, or the estate’s executor, has to deal with insurance coverage during the probate process. The laws governing probate vary by state, so inheritors need to understand all their options.

In some cases, the insurance company may allow the home’s existing coverage to continue during probate. But that coverage won’t necessarily be in the beneficiary’s name. Instead, the homeowners insurance will likely be in the name of the estate or the executor’s name, especially if the probate process is expected to take several months.

During this time, it’s a good idea for the home’s beneficiary and the executor to keep an eye on the calendar—and to stay in touch with the insurer. An executor can’t renew the house insurance for the deceased’s estate, which means the current policy will expire at the end of its term. And the insurer will want to stay updated on what’s happening with the property—whether it’s vacant or occupied, for example, or if there are plans to sell or rent it.

How to Transfer or Update a Homeowners Insurance Policy After Death

If you’ve inherited (or expect to inherit) a home, here are some steps that can help you ensure the property remains protected:

•   Contact the insurance company. If you are the surviving spouse, let the insurer know about the death as soon as you can so the policy can be updated. Be prepared to send a copy of the death certificate and any other documentation required. If the property is being inherited by someone who isn’t named on the homeowners policy, insurance coverage will likely become the responsibility of the estate as it goes through probate. If an executor has been named, that person should contact the insurer.

•   Understand your options: Don’t hesitate to ask the insurance company’s representative for a copy of the policy if you don’t have one. Be sure you’re clear on whether the policy can be transferred, when the policy expires, and when or if any payments are due.

•   Keep paying the premiums. If you miss a payment, you may lose any grace period the insurance company agreed to provide, and the policy may be canceled. This could have consequences if there is a mortgage on the home, because lenders almost always require homeowners coverage. But even if the home is paid off, coverage can be important, as it can offer protection against potential damage and liability costs.

•   Research homeowners insurance options. Even if you do everything right, the insurer may decide to cancel the policy at some point. Or you may find that as the new owner, you prefer another company or plan. Changing your homeowners insurance policy may help you save money—or get more for what you’re spending. And using an online comparison site can make shopping for a new policy quick and convenient.

Recommended: Homeowners Insurance Glossary

What Is Vacant Home Insurance and When Do You Need It?

Due to a higher risk of damage or theft, an insurer may not cover a vacant home with a standard homeowners policy for more than a few weeks. So if you expect the home to be vacant for an extended period, you should let the insurance company know. Your insurer can help you understand what homeowners insurance covers, your options for keeping the current policy in place, and whether you need to add vacant home coverage.

In the meantime, it can be helpful to keep the property maintained and, if possible, furnished, so it appears occupied. Also, if someone can check on the home on a regular basis, it may help mitigate damage from frozen pipes, a leaky water heater, storm damage, or other expensive fixes.

The Takeaway

When a homeowner dies, the insurance policy that protects their property may remain in place for a limited “grace period.” But eventually the coverage must be updated to reflect the death.

To ensure that transfer happens without any hiccups, it’s a good idea to contact the insurance company as soon as possible. The representative you talk to can help guide you through the necessary next steps, whether you’re a surviving spouse, other beneficiary, or the estate’s executor.

It’s important that you’re clear on whether the policy can be transferred, when the policy expires, and if any payments are due. You can also take a look at what other insurers have to offer to make sure the property remains well protected when it’s under your care.

When you’re ready to shop for homeowners insurance, SoFi can help. Our online homeowners insurance comparison tool lets you see quotes from a network of top insurance providers within minutes, saving you time and hassle.

SoFi brings you real rates, with no bait and switch.

FAQ

How long does homeowners insurance stay valid after the policyholder dies?

Insurance companies generally offer a grace period during which a policy can stay in place. But the length of the grace period and other practices may vary from one insurer to the next, so it can be helpful to call your insurer as soon as possible to get help navigating the transfer process.

Can a family member insure a house that’s not in their name?

If your name is not on the deed, it may be difficult to get homeowners insurance. However, if you can prove you have an “insurable interest” in the property, an insurer may be willing to provide coverage.

What happens to homeowners insurance if the home goes into probate?

The insurance company may allow the home’s existing coverage to continue during probate, but that coverage won’t necessarily be in the beneficiary’s name. It will likely be in the executor’s name or the name of the estate.

Is a vacant home covered by the deceased’s existing homeowners insurance?

It may depend on how long the home will remain vacant, or if the home is furnished vs. empty. The current insurer may decide to cancel the policy because of the added risk.

What documents are needed to transfer homeowners insurance after a death?

You can expect the insurance company to ask for a death certificate as part of the formal notification process. You may also have to provide a will or other documentation to verify the name of the beneficiary or estate executor.

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Photo credit: iStock/kate_sept2004

INSURANCE PRODUCTS ARE NOT FDIC INSURED • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY • NOT A DEPOSIT OR OTHER OBLIGATION OF, OR GUARANTEED BY SOFI BANK, N.A. OR ANY OF ITS AFFILIATES

SoFi Insurance Agency, LLC ("SoFi Agency"), doing business in the state of California as Social Finance Insurance Agency, is a licensed independent insurance agency and affiliate of SoFi Technologies, Inc. and SoFi Bank, N.A. SoFi Agency is compensated via commission or referral fee by its insurance carriers and other related service providers. Not all carriers or options in the marketplace are shown. SoFi Agency and its affiliates do not guarantee the services of any insurance carriers or other related service providers. California Entity License Number: 0L13077, Resident License No. 762363. See all licenses.

How SoFi Agency Is Compensated:
There is no charge to use SoFi Agency. However, we receive compensation from insurers and other vendors in the following ways:

● Commissions: A fee paid by the insurer for originating your policy, typically calculated as a percentage of your premium.
● Contingent & Supplemental Commissions: Performance-based bonuses from insurers for hitting annual targets, like customer volume or retention. (Supplemental commissions are based on past performance and known in advance; contingent commissions are not).
● Marketing Fees: Compensation for presenting promotions or linking you to an insurer’s application site.
● Affinity Partner Revenue: Income earned when you engage with or request services from third-party partners advertising on our platform.

If you have any questions about how we are compensated, please feel free to reach out to SoFi Agency.

All insurance products shown on SoFi are underwritten and provided by licensed insurance carriers, not SoFi Agency. SoFi Agency does not underwrite or price insurance policies. Insurance products presented may not be available in all states, and your rates and savings will vary based on individual factors. The rates or savings advertised are not necessarily available from all providers or advertisers. Not all carriers or options in the marketplace are shown.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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Buying insurance for a second home isn’t necessarily the same as purchasing a homeowners policy for your primary residence.

The coverage that makes sense for a vacation or seasonal home can depend on several factors, including how often the property will be used or if you plan to rent it out. Location is another consideration that can affect the type of coverage you might need—and your premiums.

Read on for a look at how a separate “second home” insurance policy works, how much it can cost, and how you might choose to customize coverage for your special getaway.

Does Your Primary Home Insurance Cover a Second Home?

In some instances, the liability portion of a primary home insurance policy may extend to a second home. For example, if someone was injured at your vacation home and you were found legally responsible, the policy you have for your primary home may help pay the bills. But this isn’t always the case, and you should check with your current insurer to be sure this applies to your coverage.

Keep in mind that your primary homeowners insurance policy was designed to cover your main residence. If you want to protect your second home—the structure and its contents—you should be prepared to purchase a separate policy that’s created for that purpose.

If you have a mortgage on the second home, your lender will likely require that you carry a certain amount of insurance on that property. But even if you own the home outright, purchasing a second home policy can help you protect your investment.

How Second Home Insurance Differs from Primary Home Insurance

Just as your primary home insurance coverage was built around the specifics of your main residence, a second home policy can be tailored to protect against the unique risks of a vacation home. For example:

•   A seasonal home may remain unoccupied for long stretches of time. Or it may be in a community where many residents are only there for part of the year. This means the home may be less secure than a property in a neighborhood that’s populated year-round.

•   A getaway on an ocean or river, or in the woods or mountains, may require separate flood insurance coverage or extra insurance for wildfires.

•   If you intend to rent out your second home for part of the year, or if you expect to offer short-term rentals, your insurance coverage should be based on those plans. And you can expect your premiums to be higher.

What Does Vacation Home Insurance Cover?

Though you can modify your coverage to fit your needs and budget, a second home or vacation home insurance policy generally covers the same things that a primary homeowners insurance covers, including:

•   The main structure of your home

•   Other structures, such as pool houses or sheds

•   Personal property, including appliances or lawn equipment

•   Personal liability

•   Loss of use

Vacation home insurance can also cover the same types of perils as primary home insurance, such as:

•   Theft

•   Vandalism

•   Fire, smoke, and lightning

•   Wind and hail

•   Falling objects

•   Explosions

•   Damage from vehicles or planes

•   Accidental discharge of water

•   Heavy snow or ice

To help keep the cost of premiums down, some insurers may provide something called “named peril” coverage for owners of second homes. Unlike the broader protection typically provided by a primary homeowners policy, this limited coverage extends only to specific events or hazards named in the policy. A named peril policy may also limit the coverage on other structures on your property, like a garage, shed, or boathouse. It’s important, therefore, to weigh the pros and cons of this type of coverage, which can leave owners more vulnerable to unpredictable issues.

Recommended: Hazard Insurance vs Homeowners Insurance

How Much Does Second Home Insurance Cost?

The cost of second home insurance can vary based on several factors, including:

•   Location. If your vacation home is in an area that’s often affected by extreme weather—hurricanes, flooding, wildfires, ice storms, and blizzards—the property may cost more to insure.

•   How often you use the property. If you only spend a few months of the year in your second home, burglary, vandalism, and other risks can increase, which may push up the price of your premiums.

•   Amenities. Extras like a pool, hot tub, or boat dock—which can add to a property’s liability risk and cost more to repair when damaged—may result in higher premiums.

•   Security. Installing and maintaining an up-to-date security system could help reduce risk and, therefore, costs. Belonging to a homeowners association (HOA) that provides security and maintenance could also help keep premiums down.

In some cases, you may find it makes sense to take out a separate flood insurance policy for your vacation home, or separate wildfire coverage if you’re in a high-risk location. A separate umbrella insurance policy could also help provide more liability protection.

Insurance Considerations for Renting Out Your Vacation Home

Renting your vacation home to others can also affect the coverage you’ll require and how much your homeowners insurance costs. Whether you’re running the numbers for your personal budget or building a business plan, your insurer can help you price out different policy options.

•   If your rentals will be few and far between, your insurer may extend your coverage to the rental period. But be sure to ask: Some insurers may require an endorsement or separate policy to cover the rental period.

•   If you expect to rent out the home regularly, you may have to purchase a business policy to ensure complete protection.

•   If you plan to lease the home to one renter for an extended time, you may have to purchase separate landlord insurance.

Recommended: Homeowners Insurance Glossary

How to Save on Second Home Insurance

There are a few things you can do that may help reduce the cost of your secondary home insurance premiums.

•   Bundling policies. Customers who purchase multiple policies (home, auto, etc.) from the same insurer may be able to get a discount.

•   Looking for other discounts. Ask about other ways to save—by signing up for automatic payments, for example, or paying your premium in full at the start of each year.

•   Optimizing deductible amounts. If you’re confident you can cover the out-of-pocket costs should you have to make a claim, choosing a higher deductible could help reduce your premium.

•   Improving safety and security features. Consider adding or improving the home’s security system and/or other “smart home” features, such as automated lighting or a water detection system.

•   Shopping around. Comparing quotes can help you narrow down your options. Be sure to note how certain policy differences can affect premiums, and keep in mind the reputation of the insurers you’re considering.

The Takeaway

Second homes often face unusual risks that can influence the level of insurance coverage owners must carry. This can make purchasing second home insurance more complicated—and more expensive—than buying primary home insurance.

How can SoFi help? Shopping online can make finding the right coverage quick and convenient. You can compare policies and build a plan that suits your needs and your budget.

When you’re ready to shop for homeowners insurance, SoFi can help. Our online homeowners insurance comparison tool lets you see quotes from a network of top insurance providers within minutes, saving you time and hassle.

SoFi brings you real rates, with no bait and switch.

FAQ

Do you need separate insurance for a second home?

Homeowners insurance isn’t legally required in any state, but if you have a mortgage on the property, your lender will likely require a certain amount of coverage. And just like primary homeowners insurance, a second home policy can help you protect your investment.

Is vacation home insurance more expensive than homeowners insurance?

It definitely can be. Second homes generally face unique risks that can require extra coverage.

Does second home insurance cover flood or earthquake damage?

You will likely have to purchase a separate policy to cover certain perils, including earthquakes, floods, and wildfires.

What type of insurance do I need if I rent out my vacation home?

You may need to purchase a business insurance policy or landlord insurance to cover your vacation home rental.

Can you bundle second home insurance with your primary policy?

Yes, bundling your second home insurance with your primary home insurance and/or auto policy could help you save money on your premiums.

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Photo credit: iStock/aquaArts studio

INSURANCE PRODUCTS ARE NOT FDIC INSURED • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY • NOT A DEPOSIT OR OTHER OBLIGATION OF, OR GUARANTEED BY SOFI BANK, N.A. OR ANY OF ITS AFFILIATES

SoFi Insurance Agency, LLC ("SoFi Agency"), doing business in the state of California as Social Finance Insurance Agency, is a licensed independent insurance agency and affiliate of SoFi Technologies, Inc. and SoFi Bank, N.A. SoFi Agency is compensated via commission or referral fee by its insurance carriers and other related service providers. Not all carriers or options in the marketplace are shown. SoFi Agency and its affiliates do not guarantee the services of any insurance carriers or other related service providers. California Entity License Number: 0L13077, Resident License No. 762363. See all licenses.

How SoFi Agency Is Compensated:
There is no charge to use SoFi Agency. However, we receive compensation from insurers and other vendors in the following ways:

● Commissions: A fee paid by the insurer for originating your policy, typically calculated as a percentage of your premium.
● Contingent & Supplemental Commissions: Performance-based bonuses from insurers for hitting annual targets, like customer volume or retention. (Supplemental commissions are based on past performance and known in advance; contingent commissions are not).
● Marketing Fees: Compensation for presenting promotions or linking you to an insurer’s application site.
● Affinity Partner Revenue: Income earned when you engage with or request services from third-party partners advertising on our platform.

If you have any questions about how we are compensated, please feel free to reach out to SoFi Agency.

All insurance products shown on SoFi are underwritten and provided by licensed insurance carriers, not SoFi Agency. SoFi Agency does not underwrite or price insurance policies. Insurance products presented may not be available in all states, and your rates and savings will vary based on individual factors. The rates or savings advertised are not necessarily available from all providers or advertisers. Not all carriers or options in the marketplace are shown.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

This content is for educational and informational purposes only. The products, services, or features discussed may not currently be available via the SoFi platform. Any references to third-party products, services, or companies do not constitute an endorsement, recommendation, or solicitation by SoFi. Readers should independently evaluate their options and consider their individual financial needs and circumstances before making any decisions. ©2026 SoFi Technologies, Inc. All rights reserved.

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