Does Homeowners Insurance Cover Death of the Owner?
Updated: July 29, 2024
Advertising & Editorial Disclosure
Homeowners insurance typically does not include a death benefit, as it primarily covers property damage and liability. When the homeowner dies, the policy generally remains active but requires immediate attention from the executor. Mortgage life insurance, which is different from traditional life insurance, can help by paying off the mortgage directly to the lender, alleviating financial pressure on the family. This ensures the property is protected and not lost due to unpaid debts.
Homeowners insurance does not include a specific death benefit and primarily covers property damage and liability.
Executors are responsible for managing home insurance after a death and ensuring continuous coverage to protect the property.
Mortgage life insurance can help pay off the mortgage if the homeowner dies, ensuring the lender is repaid and alleviating stress on any surviving family.
A homeowners insurance policy does not typically include a specific death benefit. It covers property damage and liability, not the death of the homeowner.
What covers a homeowner’s death is mortgage life insurance. This coverage is designed to pay off your mortgage if you die before it's paid off. Unlike traditional life insurance, the benefit goes directly to the lender rather than your family. This can relieve the financial burden on your loved ones by ensuring they won't lose their home. When considering options, compare mortgage life insurance with other types of life insurance to see which best suits your needs.
When someone dies, their homeowners insurance policy typically continues to cover the property, but the executor must notify the insurance company and ensure the policy remains active during the probate process. Without notice, the policy will only remain active 30 days after the homeowner’s death and may be canceled.
Probate is the legal procedure where the deceased's will is validated and their assets distributed. The executor's role involves updating the insurance details, paying premiums and possibly switching to vacant home insurance if the property will be unoccupied. This ensures the property is financially protected from risks like fire, theft and natural disasters until it is transferred to the heirs or sold.
Executors typically take the following steps to manage homeowners insurance after a death:
The executor must inform the insurance company about the homeowner's death and discuss the need for continuous coverage. This initial contact ensures the property remains financially protected during the transitional period.
The executor will assess the existing policy to determine if it needs updating or replacement. Both the executor and the homeowners insurance company work together to address any gaps or necessary changes.
If the existing policy is insufficient, a new homeowners insurance policy can be purchased. Homeowners insurance after death should be tailored to the specific risks and needs of the vacant or transitioning property.
Executors must ensure that there is no lapse in coverage during the probate process.
Homeowners insurance does not automatically transfer to someone else if the owner dies. Instead, the executor must contact the insurance company to update the policy details and ensure continuous coverage.
If you’ve inherited a home, be sure to address the homeowners insurance after the death of your relative to ensure the property remains financially protected. Here are some essential tips to manage homeowners insurance after inheriting a home:
When dealing with the aftermath of a homeowner's death, many questions arise about the continuation and management of homeowners insurance. Below are some frequently asked questions and concise answers to guide you through this process:
No, homeowners insurance does not provide a death benefit; it covers property damage and liability.
The policy typically continues, but the executor must notify the insurance company and update the policy details.
Yes, you can insure your parents' house if you have an insurable interest in the property, meaning you would suffer a financial loss if it were damaged.
Yes, updating the policy is necessary to reflect any changes in ownership or use of the property.
The executor is responsible for managing the insurance until the property is transferred to the heirs.
Often, a different type of insurance is needed for vacant homes due to increased risks, so you may need to purchase a new policy.
About Mark Fitzpatrick
Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.
Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.
