House and contents insurance - deceased person

adonis10

huckster wrote: »

Normally if there is an existing policy you just leave that running and then change over when the probate is granted.

If arranging a new policy if the grant of probate is not granted yet, the policy should technically be in the deceaseds name. When you arrange the policy you just inform the Insurers of the situation and they will note the executors details on receipt of a copy of the probate.

Ok, thanks.

It expired a couple of weeks after the death so my mother insured it in her name, because a) she didn't know who else's name to insure it in, and b) she is the executor and sole beneficiary.

Probably best for her to give the new insurance company a call and ask what she needs to do?

Mikeyorks

adonis10 wrote: »

Whilst probate is being sorted out, it appears that there is a grey area re insurance.

The insurance companies tend to be quite clear about it. It remains in the original name and a codicil to the policy is issued by the insurer's on notice of death. Which will normally set minimum standards on heating / draining of water systems / regularity of visits.
When Probate is granted a new policy has to be taken out in the name of the Executor(s). Sometimes the original insurer will decline to do this and you need to find a specialist. The Executor will generally take out a short term policy to cover them up to the point the property is sold / transferred to beneficiaries.

If your Mother has taken out a new policy in the period between death and Probate and has not spelled out to the new insurer that she doesn't own the property and it is unoccupied ......... the policy is probably worthless!

FlameCloud

Expectation of insurable interest is not insurable interest in itself- and given that insurable interest needs to be present at inception and (any) claim the insurer would be entitled to avoid the policy if they wished to if it was taken out in person b's name prior to her owning the property.

As others have said, it needs to be set up in the executor of the will (in that capacity) and then transferred upon ownership changing.

adonis10

Thanks for your helpful comments. Some of the legal jargon went over my head a bit! I'm used to accountancy jargon, but not law!

I think the best thing is for my mother to call the current insurer, explain the situation and go from there.

adonis10

How do you determine 'beneficial ibterest' in the estate?

adonis10

Selden wrote: »

Sorry, but this is getting a bit daft - we have very few facts regarding the case, this is a complex area of law and I am certainly no expert.

As you have said, you should ask the insurer as to the best way forward. Certainly it is unwise if B has insured in her own name without advising the insurer of the circumstances.

Legal title in the property forming the estate passed to B as executrix. Before B as executrix distributes to B as beneficiary, she should provide for all debts and expenses and ascertain the residuary estate. Debts and expenses may include, for example, mortgages, loans, tax liabilities, utility bills, credit cards, funeral expenses, and the costs of administering the estate such as insurance premiums. B as beneficiary has a beneficial interest in the estate but no specific interest in property until the residue has been ascertained - you will appreciate that in some cases there may be no residue, the debts and expenses may wipe out the estate.

So, there are three possibilities to consider:

1. Insure as A.
   Huckster is right, you could maintain the existing policy in A's name with the insurer's informed consent. However, you have now hit a renewal. A renewal is in law a new contract. Sadly A is dead and has no contractual capacity. Therefore surely a policy in A's name cannot be renewed?
2. Insure as B (personal capacity).
   FlameCloud is right, there is potentially an insurable interest issue. As discussed above, B as beneficiary has no specific interest in the property to be insured. And I wish I had never mentioned attempting to insure the beneficial interest in the estate! Pointlessly complex and problematic...
3. Insure as B (capacity as "Executrix of A, deceased").
   Particularly given that this is an estate with a sole executor and a sole beneficiary there seems no reason not to go for this option - even if probate has not yet been granted, B as beneficiary is hardly likely to accuse B as executrix of intermeddling.

Just ask the insurer!

Thanks for the advice, very helpful.

I agree that we may be delving a little deeper into the law than necessary at this moment, as, from my point of view, it seems fairly straight forward, given that there are no debts, the assets are in the form of some cash and the property, a valid will clearly stating where the deceased wished for his assets to go and seemingly few other complications.

I just wanted to do a bit of research to help out as this is the first time any of us have had to deal with such a situation so we've obviously no experience in dealing with such matters.