Peace of mind for executors and beneficiaries:
On this page, you will find a lot of useful information to help you arrange Section 27 Indemnity Insurance in the UK.
If you already know what insurance you need, you can click 'Get a Quote'.
We will use the information you provide to obtain a quotation from our underwriting partner, CLS Property Insights, who underwrites Section 27 Indemnity Insurance on behalf of Great Lakes Insurance SE.
If you have questions on the cover you should find they are answered on this page. If not, start a chat or contact us.
You can click on any of the items in 'Contents' to jump to the section that interests you.
A Section 27 notice is a legal advertisement that informs creditors that a person has died and that their estate is about to be distributed. The purpose of this notice is to give creditors two months to come forward and make a claim against the estate before the funds are distributed to the beneficiaries.
If a Section 27 notice is not taken out, and a creditor comes forward after the estate has been distributed, they may be able to hold the executor or administrator personally liable for the debt. However, if a Section 27 notice is taken out, creditors can only claim the debt from the beneficiaries.
It is important to note that creditors are still entitled to come forward after the estate has been distributed, even if a Section 27 notice was taken out. However, they will only be able to claim the debt from the beneficiaries, not the executor or administrator.
You can find out more or apply for a Section 27 notice on our Section 27 page.
Section 27 indemnity insurance covers the legal liability of executors, personal representatives, and beneficiaries from claims by unknown creditors to the estate.
This means that if an unknown creditor comes forward after the estate has been distributed, the insurance will cover the costs of defending the claim and pay any sums that are awarded to the creditor.
The insurance can be purchased with or without a Section 27 notice.
The executors or personal representatives should however still consider obtaining a credit report against the estate. This will help highlight any known issues before distribution.
Insurance cover can still be requested without a credit report, but the insurance cost may be higher.
The cost of our Section 27 Indemnity Insurance can be as low as £89.60 including Insurance Premium Tax. The cost will vary depending on the size of the estate and the potential for unknown creditors to come forward.
However, it is usually very cost-effective when compared to not having insurance. Without it, you will have the additional costs of advertising in local papers and the delays in distributing the estate. Not to mention the costs of future claims from creditors.
You can reduce the cost of Section 27 Indemnity insurance by arranging for a credit and liabilities search to identify any unknown creditors.
If there aren’t funds in the estate to pay for the insurance protection upfront, you and the beneficiaries don’t need to worry.
Insuristic customers can fund the cost of any of our Probate Insurance Policies with our partner, FSL Finance.
The loan is simple to arrange, with 90% of applications being accepted immediately.
There are no arrangement fees or early repayment charges.Â
Once a loan is approved, the money is paid to Insuristic to finance your insurance policies. You will then need to pay FSL Finance a monthly amount until the loan is repaid.
If you need cover before the loan is repaid, we can help you. Instructions on what to do in this scenario will be provided in your quotation.
You can find out more or start an application on our Probate Loans page.
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If you receive a claim on Section 27 Indemnity Insurance you must adhere to all the claims conditions listed in the policy.
Failure to do this could mean the insurer rejects your claim, or they could reduce the value the policy pays out if the breach of conditions increases the value of the loss.
You should ensure you read and understand all of the policy conditions listed in the policy.
Here are some pointers on what you should do in the event of a claim:
You should never tell a third party about the existence of this policy.
If there are circumstances that might cause a claim, you must tell the insurer in writing as soon as possible. You should also provide the insurer with as much information and documentation as you can.
Don't incur any costs relating to a claim without first consulting your insurer
Never admit liability or offer to pay or settle with someone else. You should refer the matter to your insurers claims team.
Pass all correspondence and requests for meetings to your insurer's claims team.
For full details of your claims conditions, you must read your policy wording or speak to the insurer's claims team for guidance.
Section 27 notices must be placed in two newspapers: the Gazette and a newspaper local to where the deceased owned property. If the deceased also owned a business, it is recommended that you place a Section 27 notice in a local newspaper where they owned their business.
You can find guidance on how to place a Section 27 notice on the Gazette website. All you need is a death certificate or a grant of probate or letters of administration. The cost of placing a Section 27 varies depending on what options you take. You can find the Gazette prices here, but the executor or administrator is not personally responsible for covering this cost. Instead, they can charge it back to the estate as an administration expense.
Once the Section 27 notice has been placed, all potential creditors have two months to come forward and make a claim. After the two-month period has passed, the executor or administrator is free to start distributing the estate in line with the Will or the Rules of Intestacy without worrying about covering late claims.
Remember, Section 27 Insurance protects the beneficiaries should a creditor come forward after the estate is distributed. If you buy this insurance, there is also no need to wait two months to distribute the estate, you can do this as soon as the insurance cover is in place.
In the absence of Section 27 Indemnity Insurance, the executors, personal representatives and beneficiaries may be legally responsible for any debts that the deceased owed at the time of their death.
There are a few things you can do to protect yourself if you don't have Section 27 Indemnity Insurance:
Publish a Section 27 notice in the local newspaper and the London Gazette. But remember, this only provides protection for the executors and personal representatives administering the estate. Without insurance, Beneficiaries would need to repay the creditors plus cover any legal costs.
Make sure that you have a good understanding of your legal responsibilities as a personal representative.
Take steps to locate all of the deceased's creditors.
Give creditors a reasonable amount of time to come forward and make a claim.
If a creditor does come forward after the estate has been distributed, you may be able to defend yourself by arguing that you took reasonable steps to locate them and give them a chance to make a claim. However, there is no guarantee that you will be successful.
If you don't have insurance you should seek legal advice.
If you have Section 27 Indemnity Insurance you should speak to your insurers claims team immediately. You should also send them any correspondence from creditors seeking to recover their debts. Do not acknowledge these letters or speak to the claimant, let your insurer do this on your behalf.
No section 27 insurance is an option for Section 27 Insurance. You can buy this cover when no Section 27 notice has been placed but the executors would still like to insure against the risk of unknown creditors coming forward after the estate has been distributed.
Buying No Section 27 insurance from Insuristic is possible. Buying this cover means you don't necessarily have to place a Section 27 Notice. Arranging no section 27 insurance will enable the executors to insure against the risk of unknown creditors coming forward, after the estate has been distributed.
As an executor or personal representative, it is your responsibility to ensure the estate and the beneficiaries are adequately insured.
You should be considering the following types of insurance (click the links to go to the relevant page):
We have written a guide to Executor Insurance, which explains the need for these types of policies. You can find out more here: https://insuristic.co.uk/executor-insurance/
You can arrange a Section 27 Insurance policy as soon as you have the Grant of Probate (if there is a Will) or Letters of Administration (if there is no Will),
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Please Note: Our broking team at SJL Insurance will need to talk to you to discuss your requirements. This is an advised service.
Please Note: Our broking team at SJL Insurance will need to talk to you to discuss your requirements. This is an advised service.
Please Note: Our broking team at SJL Insurance will need to talk to you to discuss your requirements. This is an advised service.
Please Note: Our broking team at SJL Insurance will need to talk to you to discuss your requirements. This is an advised service.
Please Note: Our broking team at SJL Insurance will need to talk to you to discuss your requirements. This is an advised service.
Please Note: Our broking team at SJL Insurance will need to talk to you to discuss your requirements. This is an advised service.
Please Note: Our broking team at SJL Insurance will need to talk to you to discuss your requirements. This is an advised service.