When a homeowner dies, the insurance coverage does not automatically disappear. However, the situation can become complicated, depending on how the property is titled, who is named on the policy, and how quickly the estate is settled.
“Most people think the policy is tied to the property, but it is actually tied to the person who bought it. When that person dies, the legal relationship between the insured and the home can change, and that may create a gap if the policy is not addressed,” said a North Carolina family law and estate planning attorney.
The “named insured” is the person or entity specifically listed on the policy as the insured, with rights and responsibilities defined by the policy terms.
What happens to the policy after a death?
Review your homeowners policy for any provision covering the death of a named insured. This will help determine whether coverage can continue for household members or relatives who were living in the home at the time of death, or for the named insured’s executor or legal representative.