Inherited house insurance after grant of probate

monxton

I was allowed to continue the policy (John Lewis Insurance) on my late father's house until the renewal date, even though the house was now empty. At that time, which was before probate was granted, they put the renewal premium up a lot, citing the extra risk of an empty house, though I was able to reduce the bottom line by removing the contents insurance and various "extras".

As in your case, they were insistent that I must inform them when probate was granted. There was no suggestion that I must transfer ownership of the property, though. At that time they wanted to put the price up a lot more, which I argued was unfair because there was no change in the risk, so I made a fuss and they "graciously" made an exception and allowed the insurance to continue without increasing the premium. When the house sale completed they refunded the rest of the term pro rata (those being the standard T&Cs of my dad's policy).

I expect that a lot of insurers won't want to know, so you may have little choice but to continue with your current insurer. Good luck.

Yorkshireman99

chris2000 wrote: »

Insurance during probate - no problem.
Problem started when we sent to probate form and as per the starter of this conversation, that is when they want to change policy and in new owners name (4 in our case), increase the price (whilst the risk clearly has not changed since the death over 6 months ago). Also a new insurance set up fee, and cancellation fee of >£200 if you cancel within 12 months (which is easy money for they know we are selling the house).
Outrageous

The insurers are quite entitled to do this. In order to insure the property you have to have an insurable interest. Now the ownership has changed from the estate to the beneficiaries a new policy is needed. Obviously you can try an negotiate or shop around. It is a competitive marketplace.

Nicotene

My circumstances are slightly different as the house has been left in trust between the 5 of us in my father's will and I can live in the house indefinitely. The insurance have said I can insure the house in my name once we receive Grant of Probate/Representation but as I would only really own 1/5th will they try and up the premiums and will I be able to renew with someone else without problem?

Yorkshireman99

Nicotene wrote: »

My circumstances are slightly different as the house has been left in trust between the 5 of us in my father's will and I can live in the house indefinitely. The insurance have said I can insure the house in my name once we receive Grant of Probate/Representation but as I would only really own 1/5th will they try and up the premiums and will I be able to renew with someone else without problem?

The Land Registry allow a maximum of four joint owners so the Trustees will need to register the house in the name of the trust and then insure it themselves. I suggest they get some professional legal advice on how to do this.

Nicotene

So you're saying I won't be able to insure the house in just my name, it has to be a joint insurance policy? I am living here and paying all the bills and maintenance on the house yet I can't insure it myself. Seems a bit of a pain.

Yorkshireman99

Nicotene wrote: »

So you're saying I won't be able to insure the house in just my name, it has to be a joint insurance policy? I am living here and paying all the bills and maintenance on the house yet I can't insure it myself. Seems a bit of a pain.

To be able to insure a house you have you have what is known as an insurable interest. You may, and I stress may, be able to find a specialist insurer who will write a policy. That does not alter that the trust owns the property rather than you. That is why I said that the trustees should take professional advice. They need to understand that their position as trustees has certain responsibilities one of which is securing the trust's assets. Worstcase is if the house burnt down and the re was no insurance the trustees would be liable for the loss.

Nicotene

Is it normal for a solicitor to charge you a small fee to get the original will to send off for probate?
They asked my sister to write a cover letter and 2 copies of identification from each trustee to obtain the original will.

Yorkshireman99

Nicotene wrote: »

Is it normal for a solicitor to charge you a small fee to get the original will to send off for probate?
They asked my sister to write a cover letter and 2 copies of identification from each trustee to obtain the original will.

Are you asking the solictor to handle probate or just give it to the executor(s)? In any case the solicitor quite rightly wil want to make sure they hand it to the authorised person so asking for ID is quite normal.

Nicotene

No they aren't handling probate me and my 2 sisters are dealing with it as executors in the will. My sister called the solicitor today to ask if she could collect the will. I can understand having to give ID to collect the will but why do we have to pay a nominal fee, and what is nominal. Shouldn't they have said what the nominal fee is when she called?

Yorkshireman99

Nicotene wrote: »

No they aren't handling probate me and my 2 sisters are dealing with it as executors in the will. My sister called the solicitor today to ask if she could collect the will. I can understand having to give ID to collect the will but why do we have to pay a nominal fee, and what is nominal. Shouldn't they have said what the nominal fee is when she called?

I suppose the solicitor would argue that there is cost in getting it from storage, that will probably be off site, and checking the crdentials. IMHO very short sighted as they might get more business if they treated the executors more kindly.