How Should a Personal Representative Handle Homeowner’s Insurance?

The Personal Representative has a fiduciary obligation to protect all assets of the decedent’s estate. If the decedent owned a property, this includes ensuring that the utilities and taxes are paid, and that the home is adequately secured among other obligations. What is often overlooked, however, is homeowner’s insurance.

If you are the Personal Representative of an estate that includes a property, you will want to find out if the property is insured and if the policy payments are up to date. This may require sorting through important documents such as mortgage paperwork. Once you have identified the insurer, we recommend contacting an agent at the company to notify them of the date of death and let them know you are the Personal Representative for the estate. They may require documentation, such as a death certificate and Letters of Administration.

We recommend keeping the policy in effect throughout the estate administration process in the event of unforeseen damage—from a fire, flood, or a storm—or from theft, which is more common in unoccupied properties.

Vacancy can present additional problems since homeowners’ policies may limit or exclude coverage if the home is vacant for a certain period, typically 30 or 60 days. If the home will remain vacant throughout the estate administration process, be sure to ask the insurer about a “vacant home endorsement,” which is a policy ad-on that provides coverage for a temporarily vacant property.

Another question to consider is how the policy should be titled. Again, we recommend contacting the insurance company to discuss any necessary changes in the coverage terms as well as who should now own the policy.

When in doubt, contact an experienced probate attorney for support and guidance. A probate attorney can help you navigate your responsibilities as well as limit your legal liability. For a free, confidential conversation to discuss estate administration, or the role of a Personal Representative, contact Maryland estate attorney Stephen J. Reichert at 410-299-4959 or sreichert@reichertlegal.com.

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