Unoccupied Home Insurance for Executors

If there aren’t sufficient 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. 

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.

The executors have a responsibility to arrange for the appropriate property insurance for any property owned by the deceased during probate.

This is because the executor is responsible for managing the estate and protecting the assets of the deceased.

If the property is not insured correctly or even completely uninsured and there is a loss, the executor could be personally liable for the damages.

But don't worry. Insuristic has designed a product specifically for executors, called probate house insurance.

Here are some tips when arranging executor home insurance, when the property is empty. If the property is occupied, please view the next section.

Insuring the property for the correct rebuild value

The insurance needs to cover the cost of rebuilding the property should it be completely destroyed. It is unlikely that this value will be the same as the market value.

The rebuild cost should account for:

1. Demolition and clearing expenses for the remnants of the original structure.

2. Professional fees, such as architects' and surveyors' charges.

3. The costs of materials and labour required to rebuild the property to its pre-loss condition.

If you underestimate the rebuilding cost, you might not receive the full claim amount (called under insurance).

What if I don't know the rebuild value of the property?

Insuristic clients have two options:

1. You can get a quote without declaring the rebuild value and we will price based on the number of bedrooms the property has. We will then apply a blanket building sums insured of £750,000. Providing this is sufficient to rebuild the property, it will help you avoid under insurance.

2. You could arrange a rebuild valuation yourself. BCH specialise in building insurance valuations and has offered a discounted price for Insuristic customers. You can arrange a building rebuild valuation for £100+ VAT from the BCH website.

What happens if I underinsure the property?

If the building rebuild cost is incorrect, your insurer could reduce the claim by an amount proportionate to the amount of underinsurance.

If the property is significantly underinsured they could void the policy from inception, leaving you without any cover.

So it is important to get this right. If you don't and there is a claim that is impacted, the beneficiaries may look to the executors to refund any shortfall. The cost could be significant.

If you want to find out more, check out Insuristic's article for Today's Wills and Probate Magazine: The risk of building underinsurance for executors.

Arranging the Insurance in the name of the estate

The insurance needs to be arranged in the name of the estate. For example:

• If there is a will: The Executors of the estate of 'Name of the Deceased'

• If there is no will: The Administrators of the estate of 'Name of the Deceased'

The insured name should not be an individual or beneficiary.

Draining down water systems

Escape of water is the leading cause of insurance claims in unoccupied homes.

The damage caused can be substantial and time-consuming to rectify. If this occurs while distributing the estate, it can disrupt plans to occupy, sell, or lease the property.

Draining down the water systems is a recommended preventive measure.

If you drain down the water systems, you will be covered for escape of water claims up to the value of your building sums insured, which is stated in your policy schedule.

If you decide not to drain the system, you'll need to keep the heating running during the winter months. Between October 1st and March 31st, the heating must be constantly set to 16 degrees Celsius or higher.

With this approach, we can still provide some escape of water cover:

• £3,500 for Silver cover

• £5,000 for Gold cover

What if the beneficiaries want to renovate the property before Probate is granted?

Insuristic makes this process easy for you if there are renovations planned within the period of insurance

If the total cost of renovations is less than £50,000 and doesn't involve structural modifications to the walls or roof, we can include the cover without further charge. Just make sure you confirm this during the quotation stage.

This would include projects such as kitchen or bathroom enhancements, rewiring or re-plumbing, or door and window replacements (all costing less than £50,000 in total).

If you're embarking on a major renovation project, you can fill out the quote information, but we'll need to refer these changes to our underwriter for approval. If your situation doesn't fall within our scheme, the team at SJL Insurance Services can provide guidance and access to a variety of specialist renovation insurers.

Check contractors hold a public liability insurance policy

Your insurance won't cover damage due to the activity of any contractors.

You should therefore check your contractors hold a valid public liability insurance policy. If they damage your house, you could claim against their insurance to receive the money to rectify any damage or loss. It also provides protection if they injure someone in your house that doesn’t work for them.

You should check their public liability insurance policy schedule to ensure:

• The business activities listed match the work they are doing for you,

• The expiry of the policy is in the future,

• That the level of cover they have purchased for the work they are doing is adequate.

Switching off Gas and Electricity Services

Your policy will include a condition about turning off services at the mains. 

Failing to do so could mean a claim related to the services at the house is declined.

The exception to this is when:

• You haven't drained down the water systems and need to keep the central heating at 16° to comply with any escape of water conditions
• Electricity is needed to maintain an intruder or fire alarm.

Sometimes houses can remain occupied during probate. When this happens we can still help but our broking team at SJL Insurance will recommend a different product.

You will still be able to arrange the probate home insurance in the name of the Executors of the Estate but the product will be more suitable for an occupied property.

When insuring a property in probate, it is important to read and understand your policy documents, so you understand what you are covered for and any requirements you have to ensure that the cover is in force.

Here are several examples of risk management considerations for executors.

Maintaining the Property in a Reasonable State of Repair:

Your insurers will expect you to maintain the property in a decent state of repair. This will help safeguard the property's value and prevent any claims or problems.

Neglecting to maintain the property in a reasonable state of repair might result in certain claims being denied. For instance, if there's storm damage to a roof with missing tiles.

Removing Valuables from the Property:

Your insurer will offer coverage for contents, but the maximum they will pay out for a single item is £1,000.

It is strongly advised to remove all valuables, collections, art, and jewellery from the house. These items are highly desirable to thieves and should be secured away from the empty property.

Removing Post to Prevent the Property from Appearing Empty:

It is advisable to redirect all mail and newspapers to avoid a build-up of mail.

You should also remove any mail from the property during each inspection.

This helps the property appear as though it is occupied, reducing the risk of illegal entry. It also minimises the risk of fire caused by a buildup of combustible materials.

Your policy will require that you prevent a build-up of post at the property.

Keeping the Garden Tidy:

A messy garden can draw the attention of thieves and identify an unoccupied house.

Maintaining the garden and lawns in good condition can give the impression that the house is occupied. This is also true during the winter months when clearing snow from paths is essential.

Many insurance providers demand unoccupied property inspections every seven days, often requiring written reports to substantiate each visit. This might not be feasible for many executors.

Insuristic's home insurance for executors provides a more manageable alternative.

• Properties insured by Insuristic during probate only need to be inspected every 30 days.
• The inspection can be conducted by anyone with a key.
• Insuristic also simplifies the process of documenting the inspection.
• Unlike traditional written reports, our method involves simply capturing two images with a mobile phone – one of the front of the property and one inside.
• The timestamps embedded in the images provide clear evidence of inspections in the event of a claim.

This streamlined approach ensures that unoccupied properties remain adequately protected without the burden of frequent, written inspections.

Can I insure a house as an executor?

Yes, insuring the property is your responsibility. Failing to insure the property adequately, or even not insuring it at all, can make you liable to reimburse the estate following any uninsured losses.

Is the house still insured if the owner dies?

Not necessarily.

• The policy may have lapsed.

• If the policy is still in force, the existing insurer may not wish to cover a property that is going to be unoccupied for a long period. If they do, they may also impose new policy conditions that might be difficult for you to comply with. Failing to comply with these conditions can invalidate the insurance or cause a claim payment to be reduced.

If the owner dies, it may be sensible to arrange insurance with a specialist like Insuristic.

Who pays for house insurance during probate?

The executors usually pay for the cost of the insurance out of any money held in the estate. If there is no money available for the insurance, whoever purchases the cover can be reimbursed from the estate when it is distributed.

Do executors have to insure the property?

The executors are legally responsible for the property, so they should insure it. Insurance isn't a legal requirement but if executor fails to insure the property properly, or not at all, they may be liable to the estate for any losses not insured.

Can an executor reclaim the cost of the insurance?

Yes, any insurance or other cost associated with the estate that the executor funds can be reclaimed as an expense from the estate. If there is money in the estate, the executor can be reimbursed immediately. If no money is available the executors will need to wait until the estate is distributed for repayment.

How can I check if the house is insured?

If you can't find any insurance policies in the house or on the deceased's computer, the only way to find out is to call the deceased's banks.

Ask if there are any regular payments to insurance companies. If there were, you can call each insurer to inquire if the property is insured and what your options are. Bearing in mind, the existing insurance may not be adequate, which could result in losses for the executors in the event of a claim.

What happens if I need to cancel the insurance early?

It is common for executor home insurance policies to be cancelled early. It's hard to know how long to insure the property for.

If you insure with Insuristic, purchasing an extended period isn't going to cause the estate to be out of pocket.

You can cancel the policy at any time, without Insuristic charging you a fee for doing so. Simply contact us, provide the information requested on our Contact Us form, the reason for cancellation and the date you want the cancellation to start and we will do the rest.

You will receive a pro-rata refund for any time left on the policy. The refund will be paid to the card used to purchase the policy.

In addition to executor home insurance, there are a range of other policies to protect all executors, personal representatives and beneficiaries.  

Whilst this may sound complex, don't worry. Insuristic has written a guide to executor insurance, which may be useful to you.

It explains the types of insurance you could consider and at what point of the probate process.

Alternatively, here is a brief overview of the other insurance policies that should be considered:

• Land Insurance: If a deceased person holds title to land separate from their residential property, it is prudent to consider purchasing land insurance. Landowners are obligated to safeguard others from injury on their property. This obligation would be passed on to the estate during probate. Therefore, the executors should insure the estate against the potential of third-party claims arising from injuries or property damage sustained on the estate's property.

There are a range of policies that can protect the executors and beneficiaries against claims from third parties relating to how the estate was distributed:

• Section 27 Insurance – provides insurance protection against claims from unknown creditors after the estate has been distributed. Cover can be purchased with or without a Section 27 Notice.

• Early Distribution Insurance – protection if the estate needs to be distributed without waiting for the 6-month waiting period to end;

• Missing Will Insurance – covers the risks associated with a newer will being discovered after the estate has been distributed

• Missing Beneficiary Insurance – covers the risk of either a known or unknown missing beneficiary coming forward to claim against the estate after it has been distributed.