Does Homeowners Insurance Cover the Death of Owner

Owning a home is a significant milestone, and protecting that investment with homeowners insurance is a critical part of the journey. But what happens when the unexpected occurs, and the homeowner passes away? Does the homeowners insurance policy continue to provide coverage? Who assumes responsibility for the property, and how does the transition occur?

In this article, we will unravel the complexities surrounding homeowners insurance in the event of a homeowner’s death. We will explore the impact on the existing insurance policy, the procedures that follow, and the options available to the new homeowners. This comprehensive guide aims to shed light on an often overlooked, yet crucial aspect of homeowners insurance, providing clarity and guidance for those navigating this challenging situation.

Homeowners Insurance Coverage

Homeowners Insurance Coverage

Homeowners insurance is a type of property insurance that covers losses and damages to an individual’s house and assets in the home. It typically provides coverage for the following:

  • Dwelling: This covers damage to the home and attached structures, such as a porch or garage, from perils like fire, wind, or hail. The amount of coverage should be enough to rebuild your home in case of a total loss. This means that the policy will pay for the cost of materials and labor to restore your home to its original condition or a similar one, without deducting for depreciation. Dwelling coverage also includes plumbing, electrical, and heating systems, as well as built-in appliances.
  • Other structures: This covers stand-alone structures on your property, such as a fence, shed, or gazebo. The amount of coverage is usually 10% of the dwelling coverage. This means that if your dwelling coverage is $300,000, your other structures coverage is $30,000. However, you can increase this amount if you have valuable or expensive structures that need more protection. Other structures coverage does not include land, plants, or animals.
  • Personal property: This covers your belongings inside and outside your home, such as furniture, appliances, clothing, and electronics. The amount of coverage is usually 50% to 70% of the dwelling coverage. This means that if your dwelling coverage is $300,000, your personal property coverage is $150,000 to $210,000. However, there are usually limits on certain items, such as jewelry, art, or firearms, and you may need to purchase additional coverage or endorsements for them. Personal property coverage also covers your belongings when you travel or store them away from home, but there may be lower limits or exclusions for these situations.
  • Loss of use: This covers your living expenses if you have to temporarily move out of your home while it is being repaired or rebuilt after a covered loss. The amount of coverage is usually 20% of the dwelling coverage. This means that if your dwelling coverage is $300,000, your loss of use coverage is $60,000. Loss of use coverage can pay for hotel bills, restaurant meals, laundry services, storage fees, and other reasonable costs that exceed your normal living expenses. Loss of use coverage does not cover mortgage payments, taxes, or utilities.
  • Personal liability: This covers your legal responsibility if you or a member of your household cause bodily injury or property damage to someone else. The amount of coverage varies depending on your policy, but it is usually between $100,000 and $500,000. Personal liability coverage can pay for medical bills, legal fees, and court judgments if you are sued for an accident that occurs on your property or elsewhere. Personal liability coverage does not cover intentional acts, business activities, or damage to your own property.
  • Medical payments: This covers the medical bills of someone who is injured on your property, regardless of who is at fault. The amount of coverage is usually between $1,000 and $5,000 per person. Medical payments coverage can pay for ambulance fees, hospital visits, surgery, X-rays, and other necessary treatments for minor injuries. Medical payments coverage does not cover injuries to you or your household members, or injuries that result from a business or illegal activity.

Remember, homeowners insurance policies may vary, and it’s important to understand what your specific policy covers. It’s also worth noting that homeowners insurance typically does not cover certain perils such as flooding, earthquakes, or routine wear and tear.

Impact of Owner’s Death on Homeowners Insurance

The death of a homeowner can significantly impact the homeowners insurance policy. Here’s how:

  1. Policy Continuation: After the death of a homeowner, the homeowners insurance policy typically remains in effect until its expiration date. However, the insurance company must be notified of the homeowner’s death as soon as possible.
  2. Policy Transfer: If the property is inherited by a spouse or another family member, the insurance policy does not automatically transfer to the new owner. The new owner must contact the insurance company to have the policy transferred to their name.
  3. Vacancy Clause: Most homeowners insurance policies have a vacancy clause. If the house is left vacant for a certain period (usually 30-60 days), the insurance company may reduce coverage or even cancel the policy. This is because vacant homes are at a higher risk for vandalism, theft, and damage.
  4. New Policy for New Owner: If the property is sold, the new owner will need to take out a new homeowners insurance policy. The previous owner’s policy does not transfer to the new owner.
  5. Mortgage Considerations: If there’s a mortgage on the home, the lender will likely require the new owner to have a sufficient homeowners insurance policy. This is to protect the lender’s investment in the property.

In conclusion, the death of a homeowner can have significant implications for the homeowners insurance policy. The new owner needs to understand these implications and take the necessary steps to ensure that the property remains adequately insured.

How to Transfer Homeowners Insurance After the Owner Dies

Transferring homeowners insurance after the owner dies is not a complicated process, but it requires some steps and communication with the insurance company. Here is a general overview of how to do it:

  • Step 1: Contact the insurance company as soon as possible and inform them about the owner’s death. You will need to provide a copy of the death certificate and other documents, such as the will or the probate order, to prove your relationship to the owner and your right to inherit the home.
  • Step 2: Ask the insurance company about your coverage options. Depending on the company’s rules and the type of policy, you may be able to continue the existing policy, transfer it to your name, or purchase a new policy. You may also need to update the coverage amount, deductibles, or add-ons to suit your needs and preferences.
  • Step 3: Request coverage during the probate process. If the home is going through probate, which can take months or years, you may need to request a temporary or short-term policy to protect the home until the ownership is transferred to you. This may also apply if the home is vacant or unoccupied after the owner’s death, as the insurance company may require additional coverage or cancel the policy for such homes.
  • Step 4: Get your new homeowners insurance policy. Once the ownership is transferred to you, you can finalize your new policy with the insurance company. You will need to sign the policy documents, pay the premium, and review the policy terms and conditions. You will also receive proof of insurance, which you can use to show your lender or mortgage company that the home is insured.

Does Homeowners Insurance Cover the Death of Owner?

Homeowners insurance does not cover the death of the owner, but it may cover the damage or loss of the home and the personal property of the owner. The policy may also provide liability and medical payments coverage for any accidents or injuries that occur on the property. However, the policy does not pay off the owner’s mortgage or any other debts after they die. The responsibility for the policy and the premiums may transfer to the surviving family members or the beneficiaries of the estate, depending on who inherits the home and how the insurance company handles the situation. The new owner may need to notify the insurance company, provide a death certificate, and transfer or cancel the policy within a certain time frame, usually 30 days. Otherwise, the policy may be canceled and the home may be uninsured.

Insurance for Vacant Property

When a property becomes vacant, especially after the death of a homeowner, it presents a unique set of risks that are typically not covered by a standard homeowners insurance policy. Here’s what you need to know:

  1. Vacancy and Homeowners Insurance: Most homeowners insurance policies include a vacancy clause. If a home is vacant for a certain period, usually 30 to 60 days, the insurance company may reduce coverage or even cancel the policy. This is because vacant homes are at a higher risk for vandalism, theft, and certain types of damage.
  2. Vacant Home Insurance: To protect a vacant home, you may need to purchase vacant home insurance. This is a special type of policy that provides coverage for the unique risks associated with vacant properties. It typically covers perils like vandalism, fire, wind, and hail. However, it may not cover water damage, so if the property is in an area prone to flooding, you may need to consider additional flood insurance.
  3. Cost of Vacant Home Insurance: Vacant home insurance is typically more expensive than standard homeowners insurance. This is due to the increased risks associated with vacant properties. The cost can depend on several factors, including the location of the property, its condition, and the amount of coverage you need.
  4. Maintaining the Property: Even with vacant home insurance, it’s important to maintain the property to prevent damage. This includes regular inspections, maintaining the yard, securing doors and windows, and winterizing the home if necessary.

Remember, every insurance company has different rules and coverage options for vacant properties. It’s important to discuss your needs with your insurance agent to ensure you have the right coverage.


Q 1. What happens to homeowners insurance when the owner dies and the house is left to a trust?

Ans. When a home is left to a trust, the trustee becomes responsible for the property. The trustee should notify the insurance company about the owner’s death and discuss options for continuing coverage. The policy may need to be updated or a new one may need to be issued in the name of the trust.

Q 2. Does homeowners insurance cover funeral expenses?

Ans. Homeowners insurance typically does not cover funeral expenses. These costs are usually covered by life insurance or final expense insurance policies.

Q 3. What happens if the deceased homeowner’s policy lapses?

Ans. If a policy lapses due to non-payment of premiums after the homeowner’s death, the property may be left without coverage. The executor of the estate or the new owner needs to ensure that the policy remains active.

Q 4. Can the new homeowner keep the same insurance company?

Ans. Yes, the new homeowner can choose to stay with the same insurance company, but they will need to take out a new policy in their name. The insurance company will assess the new homeowner’s risk profile and determine the premium.

Q 5. What happens to homeowners insurance when the property is inherited by multiple heirs?

Ans. If a property is inherited by multiple heirs, one option is to transfer the existing homeowners insurance policy into the names of the heirs. However, all heirs would need to agree to this. Alternatively, the heirs could choose to take out a new policy.


Understanding the implications of a homeowner’s death on homeowners insurance is crucial for both current homeowners and potential inheritors. From policy continuation and transfer to insuring a vacant property, there are several factors to consider. Additionally, exploring other insurance options such as life insurance or mortgage protection insurance can provide further financial security.

While navigating these processes can be complex, being well-informed can help ensure a smooth transition and continuous protection for the property. Always consult with an insurance professional to understand the best options for your specific circumstances. Remember, homeowners insurance is more than just a policy; it’s a safety net for your home.

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