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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.
Key Points
• A homeowners insurance policy won’t necessarily transfer to the person who will inherit the property when the owner dies.
• Notifying the insurance company as soon as possible after a policyholder’s death, and following the agent’s guidance, can help ensure the policy isn’t canceled.
• The transfer process is typically more straightforward for a surviving spouse or other beneficiaries who are already named on the current policy; even so, they should be prepared to notify and work with the insurer.
• If the home will remain uninhabited for an extended period, an insurer may require vacant home insurance to cover the added risk.
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.
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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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