Can You Insure a Property That’s Still Lived In During Probate?

Standard insurers view occupied probate homes as a high risk because there is a lack of insurable interest between the occupants and the owner (which is the estate).

Beneficiaries often cannot legally insure the building (unless they are also an executor or administrator) because they do not yet own it under the Administration of Estates Act 1925.

If the wrong person arranges the cover, the insurer is likely to deny any claim.

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 or Landlord’s Insurance policies are unsuitable.

Insuring a property that’s still lived in during probate can be complicated.

Executors face two main challenges:

• They are Legal responsibile for the estate’s assets
• Occupancy of the property by people who don’t own it – many standard policies don’t fit these situations

Occupancy can happen because:

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

Under the Administration of Estates Act 1925, legal ownership of the property passes temporarily to the personal representatives,  not the future beneficiaries.

That means:

• Executors (or administrators) hold the insurable interest
• Occupants, even beneficiaries, usually can’t legally insure the property themselves

If the wrong person arranges insurance, the insurer could deny a claim.

A standard home insurance policy is usually unsuitable 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.

Standard landlord insurance is almost certainly not suitable unless a formal tenancy agreement exists, i.e. the deceased owned a rental property, and it was already insured on this basis.

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

• Most landlord policies require a formal tenancy agreement as a condition of cover.
• This makes this policy unsuitable even if people live on the property with the executor’s permission.

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 on arranging landlord insurance, Contact Us to arrange a quote,

Most online insurance policies are usually for standard home or unoccupied home insurance. Insurers do not offer standard online solutions because an occupied 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.

Getting the insurance right

If you are struggling to find the right insurance, you’re not alone. Many executors and administrators hit roadblocks due to the lack of readily available policies.

We have developed a specialist solution with SJL Insurance that:

• Allows for the property to be correctly insured.
• 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.

You can get a quote by clicking the button below.

As executor, you’re legally responsible for insuring the property and also protecting the beneficiaries from financial loss.

If you fail to arrange suitable insurance and the property suffers damage, you could be personally liable for the loss.

For more on your responsibilities, read:

• Executor Insurance Guide
• Probate Checklist