Do You Need Home Insurance During Probate?

When a loved one dies, you get hit with many legal and financial problems to deal with at one of the worst possible times. One of those is making sure their home is protected until it goes to an heir or gets sold. To do that, you need to make sure you have the right insurance coverage.

What is Probate?

Probate is the legal process of settling someone's estate. Even if they have a will that says who should get their house, their house doesn't automatically transfer to that person. It has to go through the probate process first.

Probate makes sure that the will is legally valid. It also gives the creditors a chance to make any claims on the estate. For example, if the house had a mortgage, no one can inherit it unless the mortgage is paid off.

What Happens to Home Insurance When Someone Dies?

When the person named on the home insurance policy dies, the home insurance policy will remain active for a few weeks. This gives the family enough time to notify the insurance company and transfer the coverage.

If anything happens to the home during this period, claims will be covered as normal. However, the probate process often takes longer than you have to transfer the home insurance policy.

Who is Responsible for Insurance During Probate?

During the probate process, the estate is responsible for maintaining home insurance until the home officially transfers to an heir or gets sold. The estate pays for the home insurance premiums from the deceased person's bank account balances or other sources of funds.

The executor of the estate will need to contact the insurance company and provide a death certificate. Once the insurance is transferred, the estate can keep the coverage until the legal title of the house transfers to whomever inherits or buys it.

What Does a Person Inheriting a House Need to Do About Insurance?

If you're inheriting a house, you will need to make sure you have home insurance coverage effective when you get legal title to the home. This is the same as when you're buying a house. Otherwise, if the house burns down or has another disaster between the time it's yours and the time you buy insurance, you won't be able to make an insurance claim. You can either transfer the existing insurance policy into your name or shop for a new policy that works for you.

To learn more about insuring a house during probate, contact a local insurance agency today.

If you are looking for home insurance, be sure to check out certain websites to find out what kind of coverage you can get.

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