Estate agents handling probate sales are being urged to make executors aware of potential insurance issues when properties are left empty following the owner’s death.
Insurance specialist Everywhen warns that an existing home insurance policy does not automatically become void when the policyholder dies, but the insurer needs to be told because the circumstances surrounding the property may have changed.
The issue could be particularly relevant during probate sales, where homes can remain vacant for extended periods while an estate is administered and a buyer found.
Executors are responsible for ensuring property forming part of an estate remains appropriately insured until it is sold or ownership is transferred.
EMPTY PROPERTIES
James Cooper, Trading Director at Everywhen, says: “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 check if the existing insurance policy is still suitable and comply with any conditions that the insurer requires, if the property is going to be empty for any significant period.”
Empty homes can present additional risks because leaks, storm damage, break-ins or vandalism may go unnoticed for longer.
Everywhen says properties vacant for extended periods may require specialist unoccupied property insurance, depending on the existing policy and individual insurer’s requirements.
PROPERTY CHECKS
Insurers may also impose conditions on empty properties, potentially including regular inspections, maintenance requirements, security measures and precautions against frozen pipes.
That could become an important consideration for executors putting probate properties onto the market and for agents involved in managing access to vacant homes during the sales process.
Cooper says: “Whoever is acting as the executor, it’s worth their speaking to the insurer about whether there should be a switch from standard home insurance to unoccupied property insurance.”
He adds: “Whatever the timescale involved in the granting of probate, it’s very important to make sure that the property has the right insurance based on its current circumstances and that the insurer is kept in the loop.”
