Home Owner's Insurance

Judi’s aunt died several months ago and the family has been in the process of settling the estate.  The aunt owned her own home and many of the nieces and nephews have taken various pieces of furniture out of the house.  Interestingly, the home owner’s insurance company has been on Judi’s back to put the home up for sale sooner rather than later.  Since spring is a better time to show a home, she thought she could wait.  The company has other ideas.  I checked with my own insurance company and here’s what I learned.

If a home is vacant- no furniture- then the company will not insure the structure for vandalism after 30 days.  If someone other than the owner or spouse lives in the house, the house becomes a rental property and the appropriate insurance needs to be purchased.  This is so far afield from what I assumed- that as long as the premium was paid, the structure was totally insured.  Three things I learned today:  1) read the home owner’s insurance policy to learn about coverage when the owner dies,  2) prepare to sell the home as quickly as possible and 3) make sure the insurance is up to date. 

Insurance policies differ from company to company/state to state and it is a good idea to check out the insurance of any property for which you become responsible.

While I was on the phone with my insurance company, I asked what happens to auto insurance when the driver dies.  I was told that “someone” should call the company to let them know of the death and to let them know who will be driving the car- even if it is only for a few months until both the car is sold and the title transferred or the title is transferred to someone per the will.

This is one more reason to be sure that loved ones know the name and phone number of the insurance companies.