Probate house insurance is a type of insurance covering properties that are part of the probate process. It can also be referred to as unoccupied property insurance.
The exact cost of the insurance and what it covers will vary on a person-by-person basis and on the specific companies
In this article, we will be discussing everything you need to be aware of regarding probate house insurance. This includes the costs, what is included, who can apply for this insurance, and when you need to apply.
What is Probate House Insurance?
Probate house insurance is a specialist type of insurance that is important to have during probate. This ensures it remains in good condition until the ownership is transferred. As probate is a lengthy and complicated legal process, houses can be left unoccupied for many months. As a result, it’s useful to have home insurance to cover the property during this time.
The majority of house insurance ends when a person dies. Others can be transferred to the executor during probate. Once the insurance has been transferred, if the property is left unoccupied for long periods, it may not have sufficient cover. This is typically longer than 30 days.
How Much Does Probate House Insurance Cost?
The exact cost of probate house insurance is entirely dependent on the type of insurance coverage you are considering. Basic coverage will be significantly cheaper compared to high-coverage insurance plans. How long the coverage is needed will greatly impact the overall cost of the insurance too.
Typically, insurance companies will charge based on the number of months probate lasts. Most will charge based on 3, 6, 9 and 12 months. These insurance plans are quite flexible.
As insurance policies are tailored to each specific scenario, it’s difficult to estimate costs. A small house in a safe and quiet neighbourhood will be cheaper to insure compared to a large home in an area with a high crime rate.
The insurance company will consider the following aspects when deciding on your insurance quote:
Size of the property
Location of the property
How secure and safe the property is
The maintenance needed
Potential rebuild value
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Who Pays for Probate House Insurance?
Funds from the estate can be used to cover the cost of probate house insurance. It can be difficult to gain funds from the estate until probate has been completed. As a result, the executor will likely have to pay for this insurance independently. They can then gain back these funds once the estate has been distributed accordingly.
If the executor is unable to afford the insurance payments they can opt to use an executor's estate expenses loan in the interim. They can then use money from the estate to pay back the loan once probate has been completed.
What is Covered by Probate House Insurance?
What is covered by probate house insurance is entirely dependent on the company you choose and the level of cover you opt for. This is why it’s important to compare different insurance options before making a final decision.
Most insurance companies will offer basic and extended cover. The extended cover will include everything that the basic cover has to offer in addition to added benefits.
Here is an example of what different levels of insurance can cover. The exact costs that the insurance will cover up to will vary on a person-by-person basis and on the specific companies:
| Basic Cover | Extended Cover |
|---|---|
| 24/7 Home Emergency Cover | Fire, floods or storms |
| Repair Guarantee | Subsidence |
| Legal liabilities | Theft and vandalism |
| Buildings insurance | Damage by external factors |
| Contents insurance |
Basic Cover:
Basic cover probate insurance is the minimum you should consider. It will cover things such as:
24/7 Home Emergency Cover
If there is an emergency in the home, the insurance would cover this. This can include things such as a window breaking, faulty locks or a burst pipe. Each insurance company will have their own discrepancies of what is and isn’t covered.
Repair Guarantee
Many insurance companies will protect you for building work that may need to be done on the property.
Legal Liabilities
This covers claims made if an accident happens or a member of the public has items damaged as a result of the home.
Buildings Insurance
This is to cover the home if repairs need to be made. Depending on insurance coverage this could include fire, lightning, explosions and earthquake damage.
Contents Insurance
This will cover the contents of the home up to a certain cost. It’s particularly useful for protecting goods in the home, especially when it comes to valuables such as artwork or antique furniture.
Extended Cover:
Extended cover will include everything that the basic cover does, in addition to other factors. Some of these factors may include:
Fire, Floods or Storms
This will cover damage caused by fire, floods or storms. As these are more common occurrences, they are typically only included in extended cover.
Subsidence
Subsidence occurs when the foundations of a building are affected by the ground sinking. While this isn’t overly common, it can happen, especially in areas more prone to subsidence.
Theft and Vandalism
An unoccupied home is more likely to be broken into or vandalised, especially if it is still furnished and there are high-value items on display.
Damages by External Factors
External factors can include damage caused by the following:
- Wild animals
- Vehicles
- Objects
- Emergency services
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When Should You Get Probate House Insurance?
When you get probate house insurance will depend on how long the property is going to be left unoccupied. If the house is going to be unoccupied for more than 30 days, then it’s sensible to look into this insurance before the 30 days come to an end. This ensures the property is completely covered for the duration of the probate process.
Many standard property policies will provide cover for up to 30 days after a person has passed away. It’s important to look into whether the deceased person has property insurance coverage. While it’s highly likely they did, this type of insurance is not a legal requirement. However, it’s highly recommended to have.
Most house insurance companies can transfer the existing policy to the executor or administrator while they are waiting for the grant of probate. After the grant of probate is accepted, this can nullify the standard home insurance on the property. This is when it’s useful to apply for probate house insurance.
The existing insurer may allow you to make changes to the existing policy while the house is unoccupied. After probate has been completed, the insurance can then be placed in the name of the new owner of the property.
Who Can Get Probate House Insurance?
Executors, administrators and trustees can apply for probate house insurance. This is because it’s their legal responsibility to protect the estate throughout the probate process.
In some instances, a beneficiary can apply for probate house insurance. They will be added as an additional policyholder as they may not be the person responsible during probate. A person applying for probate house insurance must prove they have an “insurable interest” in the property.
Alternatively, a solicitor can open a policy on a person’s behalf. If you have little experience with the probate process, it’s useful to hire the assistance of a solicitor. Most executors or administrators will work closely with a solicitor who specialises in probate.
Here at Compare My Move, we can connect you with up to 6 licenced and trusted probate solicitors. All our partners have passed our strict verification process. They will also regulated by either:
- Solicitors Regulation Authority (SRA)
- Council for Licensed Conveyancers (CLC)
- Law Society of Scotland (LSS)
- Law Society of Northern Ireland (LSNI)
- The Institute of Chartered Accountants (ICAEW)
Simply fill out our online form to be connected to the best solicitors in your local area. You can have peace of mind knowing that you are being provided with the best possible service. In addition to this, we can also help you to save money on your probate costs.
