One important responsibility executors have is to ensure that the deceased’s estate is properly protected during the estate administration until it can be distributed to beneficiaries.
It is important that the estate’s assets are properly insured. An executor who fails to do this could be held personally liable for any losses suffered by the estate if its felt they failed to take the necessary care by making sure the property was adequately insured.
When an estate includes a house, which later become unoccupied, this changes the insurance position and you should be wary of relying on any existing policy. Whilst the deceased would have had adequate insurance on the property, for an unoccupied property, insurers will require that the policy is either updated or a new policy is purchased.
Even if an insurer does continue to provide insurance, it is likely that the premium will be higher. In addition, it is possible that the coverage may be restricted; insurers are known to restrict damage to an unoccupied property to only damage caused by fire, lightning, aircraft and explosion. What does this mean for you? If the property was, for example broke into and vandalised, the policy would not provide cover. In such circumstances, as an executor you may be held liable for the cost of repairs or any difference in the property valuation.
If the insurer does provide comprehensive cover, they may place onerous conditions on you as the executor. Often insurers in exchange for comprehensive cover for unoccupied properties, will require regular (i.e. fortnightly) inspections. Failure to do so would result in the claim being rejected. If the property is on the market, then your estate agent may do this for you (for a fee possibly) but as the executor it is your responsibility to ensure the conditions of the insurance policy are complied with.
Any amended or new policy should be in the name of the executors. Having the executor’s interest ‘noted’ does not necessarily entitle them to make a claim or receive the benefit of any claim proceeds payable under the policy; it may only mean that they are notified if a policy cover is cancelled or lapsed.
You should carefully consider the insurer you are using and whether they have experience of probate properties. Some specialise in probate insurance and may be more understanding of the responsibilities attached to being an executor.
If the estate is cash limited, you may have problems with payment of the premium. A specialist insurer may allow a period of time where unoccupancy conditions will not apply, or allow deferred payment of the premium until funds are available from the estate.
What do you keep in your shed?
Now that people are spending more time in their gardens and doing home maintenance garden sheds across the country are packed with goodies that thieves would just love to get their hands on.
From lawnmowers to garden furniture, a typical shed’s contents is, on average, worth just over £2,350, figures compiled by insurers indicate. And many householders keep items in outbuildings that add up to even more.
While the average might be £2,350, almost four-in-ten say their sheds contain valuables that would cost between £1,000 and £5,000 to replace. Another one-in-twenty put the figure at a whopping £5,000 or more. Yet, despite this, many are taking a considerable financial risk by not having the sort of home insurance in place which covers outbuildings for theft and damage.
More than one-in-ten are certain that their policy does not cover the things they store in their sheds, while another third simply don’t know.
The items most frequently kept in sheds and other outbuildings are attractive to thieves as they’re often popular things to own, and easy to sell on, as well as potentially being worth thousands.
As you’d perhaps expect, garden tools, lawnmowers and power tools top the list of most popular items found in sheds. Garden furniture, which can cost thousands if it’s high quality, is also stored in sheds by nearly one-in-two, and BBQ’s by just over one-in-four.
Motorbikes and bicycles are other popular possessions which can also cost thousands and that, often by necessity, are also commonly kept in outbuildings.
Some householders store away sports equipment, such as golf clubs, and electrical items. Again, either can be worth considerable sums.
Toys and things used for hobbies, such as train sets and musical instruments, are also commonly found in sheds.
It’s not worth taking the risk, make sure you have appropriate cover in place.
Please call us on 0207 691 2409 for an appropriate quotation.Unoccupied Property – Do I Need Insurance?
