Whilst you are not legally required to insure a home after someone has died (in the same way you are not required to insure your own home), if something does happen before the house has sold, the people dealing with the estate (the executors) will be personally responsible for any loss.
What happens if I don’t insure?
If there is damage or loss to the house, the executors pay from their own pocket to compensate the people who are inheriting the estate to the house for the loss – this may be rectifying the damage caused or paying a lump sum as compensation. It also means that if the house causes damage to someone else (for example, if there was a water leak that damaged the neighbours’ property), the executors would also need to pay the neighbours from their own money, not from estate money.
Therefore, whilst it isn’t a legal requirement, it’s a very sensible thing to do, and not having insurance can be a very costly mistake.
Specialist Insurance
Most household insurance is not suitable for an unoccupied home, and most “everyday” companies have extremely onerous conditions to meet to ensure the house is secure. Some companies do not offer unoccupied insurance at all, and some will only offer it for a small period of time, or until a Grant of Probate is given. Therefore, it is important not to assume that the insurance the deceased had will cover the property after death – it is important to speak to them and discuss the terms on which they cover.
Lawson West Solicitors have contacts with various brokers and can provide quotes for insurance policies*.
Visting conditions
Non-specialist insurers often require the property to be visited weekly, to ensure it is secure. The person visiting will need to keep records of the visits. Specialist insurers can reduce this to monthly or no visits required, although bear in mind that this will affect the premium that is paid.
Winter Requirements (November to March)
Over winter, there are often extra special requirements for unoccupied properties. Winter, for these policies, tends to be 1st November – 31st March. During this period, most insurance companies require all water to be drained from the pipes, or for the heating to be on constantly at a minimum temperature which varies from policy to policy but is often around 15oC. make sure that you check the specific policy that you hold. Some policies require loft hatches to be kept open during these months if there is a water tank. These requirements are all to do with the escape of water following pipes freezing over in the winter.
Who pays for the insurance?
Whilst property insurance is an estate expense, it cannot be paid when the executor doesn’t have access to the bank account. In these cases, the executor pays the premium personally, and reclaims the money when they have access to the estate funds. Policies can often be taken out in 3, 6, 9 or 12 month policies, but often the 12 month policy is the only one that offers a refund if the house is sold before the expiration of the policy.
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How can we help?
Please call our friendly probate team on 0116 212 1000 or 01858 445 480, alternatively complete our free Contact Us form and we will get in touch as soon as possible. Lawson West Solicitors also has a full service conveyancing department who can also work alongside you to progress the sale.
* we cannot recommend any particular insurance policy as solicitors are not allowed to do this
