Landlord Insurance before Probate

BlueJuly

Hi everyone,
Quick question to help a friend. 
He's inherited a property, which he intends to keep and has rented it out. He doesn't have probate yet, but felt it was safer to have a family living there than leave it empty. Needs Landlord insurance, but he's been told by an insurance provider that it's not possible, unless the property was either empty or granted probate first. It doesn't sound right to me, surely it's far more secure with good tenants inside than being empty. 

Is there a type of (for want of a better expression) ----  pre-probate landlord insurance---- that he can take out ? 

Thanks 

Savvy_Sue

Is he the executor?

If not, I suspect the insurance provider is correct. A potential beneficiary may not have an insurable interest.

Using a broker is his best hope.

Keep_pedalling

Insurance companies are free to decide what they are willing to insure and what they won’t. I would be concerned that your friend has jumped into being a landlord without doing his homework. Does he realise that any rent paid prior to obtaining probate is income that the estate need to pay income tax not him. Has he obtained all the appropriate safety certificates before renting the house out? Has he secured the tenants deposit as by law he has to do?

BlueJuly

Hi and thanks for the above postings.
He's both the executor and the beneficiary. 
Yes he did mention that the rental income would belong to the estate and that he had obtained certificates, references and deposit scheme. 
To the best of my knowledge, he seems to have been thorough during an emotionally difficult time for him, but has come stuck at this hurdle.

Savvy_Sue

OK, niche area, so definitely one for a broker. Some may be open on Saturdays, but even if not worth identifying some to call on Monday!

BooJewels

I'd also endorse the idea of using a broker.  I did that with an empty estate property, as I was getting very expensive quotes, but more importantly, with unworkable endorsements for our circumstances.  The broker got me a policy that was about the same price as I'd been getting, but on much better terms and without the unworkable endorsements.  The policy fit our circumstances much better than anything I'd found.

BlueJuly

Great I'll pass it on. Any good recommended  brokers, or how to find them?
Thanks

getmore4less

As named executor that gives them the rights to deal with the estate and the property(assuming no residual surviving legal owner) giving them the insurable interest.

Rent within the estate may be taxable within the estate but gets distributed with a tax credit.

Savvy_Sue

BlueJuly said:

Great I'll pass it on. Any good recommended  brokers, or how to find them?
Thanks

Depends if you want to be able to wander into one and sit down face to face, or do it all over the phone ... but no particular recommendations. If you want face to face, A-Plan have offices across the country, but I haven't used them for years and years, and it wasn't for this kind of insurance! 

If the first lot you call can't help, try another. I've googled for my area, and there's a whole page of results, probably more!  

Just a thought, but there are some links from this guide to a guide to landlord insurance. They have not been updated, but there may be specific posts about landlord insurance elsewhere on the forum.