Can I Insure My Deceased Parents’ Home? A Guide for Beneficiaries

If you have inherited a home from your deceased parents, you may be wondering what to do with the property and how to insure it.

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Depending on your plans for the home, you may need to change the type of insurance policy or get a new one. Here are some things to consider when insuring an inherited home.

Transfer the Ownership

The first step is to make sure you are the legal owner of the home. If your parents left a will, it should specify who inherits the property and how it should be distributed.

If there is no will, the probate court will decide who gets the property according to the state laws.

You may need to provide documents such as a death certificate, a letter of testamentary, or a deed of distribution to prove your ownership.

Contact the Insurance Company

Once you have established your ownership, you should contact the insurance company that holds your parents’ homeowners policy.

You will need to inform them of the death and provide them with your information.

Depending on the insurer, you may be able to transfer the existing policy to your name or get a new policy with the same or different coverage.

You should also ask about any discounts or benefits that you may be eligible for as a new policyholder.

Choose the Right Type of Policy

The type of policy you need depends on what you plan to do with the inherited home. Here are some common scenarios and the corresponding insurance options:

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You plan to live in the home as your primary residence

In this case, you can get a standard homeowners insurance policy that covers the structure, personal property, liability, and additional living expenses.

You should also review the coverage limits and deductibles and adjust them according to your needs and budget.

You plan to rent out the home

If you want to generate income from the inherited property, you will need a landlord insurance policy that covers the structure, liability, and loss of rental income.

You should also require your tenants to have renters insurance that covers their personal property and liability.

You plan to sell the home

If you want to sell the inherited home as soon as possible, you may not need a long-term insurance policy.

However, you still need to protect the property from damage or liability while it is on the market.

You can either keep the existing homeowners policy until the sale is completed or get a short-term unoccupied property policy that covers vandalism, theft, fire, and other perils.

You plan to use the home as a vacation or second home.

If you want to keep the inherited home for occasional use, you will need a second home insurance policy that covers similar risks as a standard homeowners policy but with higher premiums and deductibles.

This is because second homes are considered more vulnerable to theft, vandalism, weather damage, and liability claims.

Compare Quotes and Shop Around

Before you decide on an insurance policy for your inherited home, it is advisable to compare quotes from different insurers and shop around for the best deal.

You can also check customer reviews and ratings to find out about the quality of service and claims handling of each insurer.

Insuring an inherited home can be a complex and emotional process, but it is necessary to protect your valuable asset and yourself from potential losses.

By following these steps and tips, you can find the right insurance policy for your situation and enjoy your inheritance with peace of mind.

Conclusion

Insuring an inherited home can be a daunting task, especially if you are dealing with the loss of your parents and the legal aspects of transferring the ownership.

However, by following the steps and tips in this article, you can find the right insurance policy for your inherited home, whether you plan to live in it, rent it out, sell it, or use it as a vacation or second home.

You can also save money and time by comparing quotes and shopping around for the best deal.

Remember to contact the insurance company as soon as possible and inform them of the death and your plans for the property.

By doing so, you can protect your valuable asset and yourself from potential losses and enjoy your inheritance with peace of mind.

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