When a person dies, it may take months for all their affairs to be sorted out. Within this time, their estate’s property may be at great risk of some unforeseen circumstances that may or may not be covered by regular insurance. This is where probate-related insurance comes in.
What is Probate-Related Insurance?
Probate-related insurance is specialized insurance that covers the deceased individual’s assets and properties while the probate process is ongoing. When a property becomes unoccupied, the regular insurance policy may not fully cover the unoccupied property. Most insurance companies stop covering unoccupied properties after 30-60 days.
This is a major problem, especially for an executor or administrator, who is charged by law to ensure that the value of the estate is maintained before it is passed on to the rightful heirs. Without the right cover, any damage, theft, or legal issues can lead to a substantial loss of assets by the estate, which can even lead to legal consequences against the executor.
Why is this type of Insurance Needed?
Unoccupied houses, in this case, are more likely to experience problems. If there is nobody in the house, a water leak, an electrical fault, vandalism, or a break-in can go undetected. However, there is no provision in normal home insurance.
This is where probate-related insurances step in. They provide peace of mind with the knowledge the property is covered in the intervening period as legal matters are being sorted out. Some insurers also provide flexible terms to cover short periods as required.
What Does It Cover?
Although the details of the policies vary, the majority of the probate-related insurance
- Fire, flood, and storm damage
- Theft, attempted theft, vandalism
- The escape of water or oil into the soil can
- Legal Liability if Someone is Injured on the Property
- Malicious damage
Some may also offer optional extras such as legal expenses cover or protection of valuables within the property. However, if you are unsure of your requirements, it is always worth contacting a specialist provider with experience in dealing with probate work.
Who Arranges It?
It is up to the executor, solicitor, or administrator to purchase probate-related insurance. The insurance must commence as soon as the property becomes empty, especially if probate is expected to take some time.
Making sure to get one of these policies in place as soon as possible will demonstrate to those who will inherit your estate that you’ve done your best to protect your estate.
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The length of cover needed depends on various factors including
It can take anywhere from several weeks to over one year for probate to be completed, depending on the extent of the case. The property can be sold, transferred to a member of the family, or rented out after probate. Until then, insurance for probate will guard against unexpected loss. Taking care of an individual’s estate is an important job, with paperwork, legal obligations, and stress involved, but it doesn’t have to be complex when it comes to protecting an individual’s property, particularly if you have the proper insurance in place in relation to probate matters.
