Occupied House Insurance
During Probate

More properties remain occupied during probate due to the following:

• Future beneficiaries moving in for financial reasons.
• Financially dependent individuals already occupy the property.
• Existing tenants living in the property.

This makes arranging insurance more complex for executors, administrators, and personal representatives, who hold legal responsibility for the property.

Suppose the wrong type of insurance is arranged, such as a standard home insurance policy or an unoccupied probate property policy. In that case, claims may be denied due to non-disclosure of occupancy status or insurable interest issues.

However, we can help you find the right insurance policy through the specialist insurance broking team at SJL Insurance.

Insuring an occupied house during probate presents several key challenges:

1. Insurable Interest

Insurable interest means only those with a financial stake in a property can insure it.

For probate properties, executors, administrators, or personal representatives hold the insurable interest, even though they do not legally own the property. Future beneficiaries cannot arrange insurance because they do not have ownership rights until probate is granted and they have officially inherited the property.

This issue means that most standard home insurance policies are unsuitable.

2. Why Standard Home Insurance is Not Suitable

A standard home insurance policy is usually unsuitable for occupied probate properties, and insurers will usually decline to offer cover because:

• The occupants cannot arrange cover due to a lack of insurable interest.
• Insurers may view occupants as a higher risk since they don't own the property, potentially leading to less diligent property care
• The legal owners (executors/administrators) do not reside at the property, making the risk profile different from a typical homeowner’s policy.

3. Why Standard Landlord Insurance May Not Work

Standard landlord insurance is almost certainly not suitable unless a formal tenancy agreement exists.

This is a crucial point, as many executors assume this type of policy will work when it usually won't. 

Most landlord policies require a formal tenancy agreement as a condition of coverage.

This makes this policy unsuitable even if people live on the property with the executor’s permission.

4. When Landlord Insurance Might Be Suitable

If the property was rented out before the owner's death with a formal tenancy agreement in place, and the tenancy is continuing, the existing landlord insurance might be transferable.

However, this must be discussed with the insurer immediately, and the policy must be updated to reflect the estate as the owner (see below). 

Do not assume the existing policy will automatically cover the property during probate. Contact your insurer or broker for expert advice before making any assumptions.

When updating the insurance policy (or arranging a new one) the insured name on the policy should be updated to:

• Where there is a Will: The Executors of the Estate of [Deceased’s Name]
• No Will: The Administrators of the Estate of [Deceased’s Name]

If you need advice arranging landlord insurance for a probate property, the team at SJL Insurance can help.

Most online insurance policies are usually for standard home or unoccupied home insurance. Insurers do not offer standard online solutions because an occupied probate property has a unique risk profile.

To avoid insuring the property incorrectly, you should speak with a probate insurance specialist like Insuristic rather than a general home insurance provider.

How to Get an Insurance Quote

Struggling to find insurance for an occupied probate property?

You're not alone if you’ve been struggling to find insurance for an occupied probate property. Many executors and administrators hit roadblocks due to the lack of readily available policies.

We have developed a specialist solution with SJL Insurance that:

• Can be arranged in the name of the estate.
• Is suitable for occupants without insurable interest.
• Covers buildings only or includes contents insurance.
• Insures both estate-owned and occupant-owned contents.
• Is backed by an A-rated insurer with a dedicated claims team.

Protect yourself from personal liability, and get the right insurance policy today.