Vacant Probate & Estate Property Insights

A blog offering expert guidance for executors, heirs, and investors managing vacant or inherited real estate.

Vacant Property

Special Warning: When Someone Dies, Their Insurance Coverage Often Dies With Them

Many probate heirs and executors assume that if the decedent had homeowners insurance when they died, the coverage continues. But they are often blindsided when a claim is denied, sometimes after a catastrophic loss like a fire or break-in.

"Coverage denied. The named insured is deceased."

This is a devastating surprise, but a common one. Homeowners insurance is a personal contract. In many cases, it ends when the policyholder dies. Even policies that include short grace periods have strict conditions that must be met to remain valid.

What Really Happens When the Policyholder Dies?

When someone passes away, their homeowners policy does not automatically transfer to the heir or executor. Here is what typically happens:

  • Some policies continue for 30 days or until the end of the term, but only under specific conditions

  • If the property changes ownership at the moment of death, such as through a Lady Bird deed or Payable on Death (POD) deed, coverage can terminate immediately

  • If a claim occurs during this period, it may be denied if no valid policy is in place

The Hidden Risk of Lady Bird and POD Deeds

Well-meaning estate planners often use Lady Bird deeds or Payable on Death (POD) deeds to simplify asset transfers and avoid probate. These tools transfer ownership instantly upon death, without court involvement.

But here is the problem:

When the original owner dies, the property technically no longer belongs to them.

This instant transfer of ownership can void the insurance policy immediately. Even policies that provide temporary coverage after death often require that the deceased still owned the property. With a POD or Lady Bird deed, that condition is no longer met. The result is that the new owner may be left with no coverage unless a new policy was already arranged in their name.

What Should Executors and Heirs Do Immediately?

If you are the executor, personal representative, or family member handling a deceased person’s property, take action right away:

Step 1: Review the Policy

  • Locate the declarations page and identify the named insured

  • Read the policy conditions for any terms related to death, occupancy, or ownership

  • Look for language involving "termination," "assignment," or "legal representative"

Step 2: Contact the Insurance Company

  • Notify them of the policyholder’s death

  • Ask whether coverage remains in effect and for how long

  • Get their response in writing

Step 3: Secure Vacant Property Insurance

If the home is unoccupied, even temporarily, it is best to obtain vacant property coverage immediately. Standard homeowners policies often do not cover losses once the home is vacant or has changed ownership.

Who Can Get Vacant Property Coverage?

Vacant property insurance is available to more than just the original homeowner. The following individuals can usually qualify:

  • Executor or administrator of the estate
  • Court-appointed personal representative
  • Trustee or successor trustee (if the property is held in trust)
  • A family member with power of attorney or temporary control
  • Probate attorney or fiduciary managing estate assets
  • An heir with a verifiable insurable interest
  • A buyer under contract who has taken possession but not yet title

Common Timelines to Watch

EventInsurance RiskDay 1Policy may still be active under the deceased's name, but coverage may no longer apply if the home transferred at deathDay 30 to 60Many insurers cancel or choose not to renew automaticallyAfter 60 daysThe property is often completely uninsured unless a new policy is in placeAfter a lossIf ownership changed and no valid policy was in effect, claims are often denied

Do Not Risk a Total Loss

Imagine this: the home is unoccupied, and days after the owner's passing, a fire breaks out. You submit a claim, only to hear:

"Coverage denied. The insured is deceased. The property is no longer in their name."

The home is lost. The estate or heirs are left with nothing.

This scenario is not rare. It happens often. And it is completely preventable.

Get Vacant Property Coverage Today

We offer fast, affordable insurance designed for:

  • Probate and estate properties

  • Unoccupied inherited homes

  • Properties preparing for sale

  • Homes transferred through Lady Bird or POD deeds

Request a quote today and get coverage in place as early as tomorrow.

👉  Request a Quote Coverage can often start by the next day!