What Insurance Is Required During Real Estate Probate? Property Insurance Guide for Executors and Administrators

What are the hidden insurance risks when selling a house in probate? How can executors, administrators, and personal representatives protect themselves from liability for property damage during probate sales? What specialized coverage do vacant probate properties require?

By Maya Bovshow, CEO, Trust Properties USA

When a property goes through probate, insurance is one of many elements that pose risks you may not know about, especially if it’s your first time as executor or administrator of an estate. Here are some of the common traps around insurance in the probate of real estate, and how the experts avoid them.

Please note that this article is only a general guide and does not constitute legal advice. Also, please be aware that the related laws vary by state. You should have a qualified local attorney advising you throughout this process. If you are in California, you may want to review our helpful series on probate for real estate in California.

If you’re selling property and confused by the probate system, you’re not alone—and you don’t have to do this alone. Contact Trust Properties USA—we can handle all the details at zero upfront cost.

What Do I Need to Know About Probate Sales?

When someone passes away owning real estate, that property often becomes part of their probate estate. Unless the property transfers automatically through a trust, joint tenancy, or survivorship provisions, a court-appointed personal representative—either an executor named in the will or an administrator appointed by the court—is often named to handle the estate’s affairs.

Until the sale completes and title transfers to a new owner, the estate—through its personal representative—remains legally responsible for protecting the property. This responsibility includes maintaining appropriate insurance coverage, which isn’t just prudent, but often legally required under the laws of many states.

What is the Executor’s Fiduciary Duty to Preserve Estate Assets?

Under California Probate Code §§9600-9601, for example, executors and personal representatives have a clear legal obligation to ‘take possession or control of the decedent’s property’ and ‘manage, maintain, and preserve it.’ This fiduciary duty explicitly includes real estate and extends to maintaining adequate insurance coverage.

If estate property suffers damage—whether from fire, vandalism, flooding, or other hazards—while uninsured or underinsured, the estate sustains a direct financial loss that reduces what beneficiaries ultimately receive. More critically, the personal representative who fails to maintain proper insurance may face serious personal legal consequences.

Beneficiaries who discover that an executor or administrator allowed insurance to lapse or failed to secure appropriate coverage can petition the probate court for a surcharge against the personal representative. In severe cases, courts may remove the fiduciary from their position entirely for breach of duty. Moreover, the personal representative could become personally liable for losses that proper insurance would have covered.

What are the Risks and Coverage Requirements for Vacant Properties During Probate?

With vacant properties, insurance coverage requirements and the inherent risks involved can be complex and confusing—and they can change over time.

In many states, probate sales typically take six to twelve months from start to finish, though complex cases involving disputes, court backlogs, or title issues can extend well beyond a year. During this extended timeline, probate properties frequently sit vacant—heirs have moved out, the deceased lived alone, or the family wants the house empty for showing to potential buyers.

Vacant homes present substantially higher risks than occupied properties. Without daily human presence, problems go unnoticed: pipes burst and flood undetected, vandals break in without witnesses, squatters take up residence, electrical issues smolder unnoticed, and routine maintenance goes undone. 

Insurance companies understand these elevated risks well.

Most standard homeowners’ insurance policies contain vacancy clauses that restrict or completely exclude coverage if a property remains unoccupied for 30 to 60 consecutive days. Once that threshold passes, the policy may automatically void certain coverages—or cancel entirely—leaving the estate dangerously exposed.

Personal representatives facing this situation need to take immediate action by either requesting a vacancy endorsement from the current insurer or purchasing a specialized vacant property insurance policy. These policies cost substantially more than standard homeowners insurance because they reflect the genuine increased risk, but they remain essential for fulfilling the executor’s duty to protect estate assets.

Why Should I Be Especially Concerned with Coverage Gaps and Uncertain Coverage During Probate?

When a homeowner dies, their existing insurance policy doesn’t immediately terminate—but it also doesn’t automatically adapt to the new situation. Most insurance companies provide a grace period of approximately 30 days after the policyholder’s death, during which the existing coverage continues unchanged if premiums remain current.

However, this grace period quickly expires. If the personal representative fails to notify the insurance company of the owner’s death, doesn’t update the policy to reflect the estate’s ownership, or allows premiums to go unpaid, the policy will lapse. Given that probate commonly takes many months, a lapsed policy creates a dangerous gap where the property sits completely unprotected during a lengthy administration period.

The consequences of this gap can be devastating. A fire, major storm damage, or liability incident occurring while coverage has lapsed leaves the estate—and potentially the personal representative personally—responsible for losses that insurance should have covered.

What are Some Common Insurance Mistakes Executors Make During Probate?

Based on decades of experience with probate real estate sales, certain insurance-related mistakes occur repeatedly, causing significant problems for estates and their administrators:

What Happens If I Don’t Find the Existing Insurance Policy on an Inherited House?

Many executors and administrators never obtain a copy of the deceased’s homeowners’ insurance policy. Without reviewing this critical document, they don’t know what coverage exists, when it expires, what exclusions apply, whether vacancy restrictions are in place, or even which company provides the insurance. Operating blind in this way makes it impossible to ensure adequate protection.

Do I Have to Notify the Insurance Company of the Death of a Property Owner?

In general, yes, you must notify an insurance company when the owner of a property dies. Personal representatives sometimes assume the existing policy will simply continue automatically. In reality, insurance companies generally need formal notification of the policyholder’s death along with documentation (typically a death certificate) to properly adjust the policy. Without this notification, the policy may remain in the deceased’s name with outdated contact information, creating confusion about premium payments, claims procedures, and policy status.

Do I Have to Update an Insurance Policy When a Home Is Vacant for a Long Time?

In general, yes. Perhaps the most dangerous mistake is letting a property sit empty for months while maintaining a standard homeowners policy designed for occupied homes. When the personal representative doesn’t explicitly inform the insurer that the property is vacant, they may unknowingly violate the policy’s terms and conditions. This violation can void coverage entirely—meaning that when damage occurs, the insurance company legitimately denies any claim.

Does Standard Real Estate Insurance Coverage Suffice for All Situations?

No. Different property uses require different insurance. A house being renovated needs builder’s risk coverage. A property being rented to temporary tenants requires landlord insurance. A vacant home needs vacant property insurance. Executors who don’t understand these distinctions often maintain the wrong type of policy for the property’s current situation, creating gaps in coverage that surface only when a claim is filed.

During Probate, Can I Pay Homeowner’s Insurance from Estate Funds?

Yes. Insurance premiums are legitimate administrative expenses of the estate and must be paid to keep coverage active. Some personal representatives hesitate to spend estate funds on premiums, or they simply forget to make payments during the chaotic period following a death. A lapsed policy due to nonpayment of premiums leaves the property uninsured, potentially for months before anyone notices.

What Steps Do I Need to Take With Insurance When a Homeowner Dies? An Executor’s Insurance Checklist

Personal representatives who handle insurance properly can avoid most problems while fulfilling their fiduciary obligations. Here’s a practical, step-by-step approach:

Step 1: Locate and Thoroughly Review the Existing Homeowners Policy

Immediately upon appointment, find the decedent’s insurance documents. These are often filed with other important papers, stored in a safe, or available through online accounts. Review the policy to determine coverage limits, the expiration date, what perils are covered and excluded, any vacancy restrictions or clauses, and whether coverage automatically continues when the owner dies.

Step 2: Contact the Insurance Company Promptly

Call the insurer within 30 days of the death—most companies require notification within this timeframe. Provide a copy of the death certificate and your letters testamentary or letters of administration proving your authority. Ask explicitly whether the policy will continue covering the property, for how long coverage extends under current terms, what changes or endorsements are necessary, and who should be listed as the named insured going forward.

Step 3: Address Vacancy Issues Immediately

If the property will remain vacant—or even unoccupied with furniture remaining—for more than 30 days, inform the insurance company immediately. Request either a vacancy endorsement to the existing policy or obtain quotes for a standalone vacant property insurance policy. Understand that vacant property insurance costs more than standard coverage, but this additional expense is a necessary and proper estate expense.

Step 4: Ensure Premiums Are Paid on Time Using Estate Funds

Set up a system to ensure insurance premiums get paid promptly. Consider arranging automatic payments from an estate bank account if available. Keep detailed records of all premium payments—these are allowable administrative expenses that you’ll report to the court. Never pay premiums from your personal funds expecting reimbursement; always pay directly from estate assets.

Step 5: Adjust Coverage as Property Status Changes

Property circumstances often change during probate. If you decide to rent the property while awaiting sale, switch to landlord insurance. If substantial repairs or renovations become necessary, obtain builder’s risk coverage. If security concerns arise, consider adding extra liability coverage. Regularly communicate with your insurance agent about the property’s current status and intended use.

Step 6: Maintain the Property to Avoid Claims

Insurance doesn’t replace good property management. Visit the property regularly to check for problems. Maintain adequate heating during winter to prevent frozen pipes. Keep the property secure against trespassers. Address maintenance issues promptly. Many insurance policies require the property to be ‘maintained in good condition,’ and neglect can provide grounds for claim denial.

Step 7: Document Everything Thoroughly

Keep copies of all insurance documents, premium payment receipts, correspondence with insurance companies, and records of any coverage changes. Take dated photos of the property’s condition throughout the probate process. This documentation protects you if beneficiaries later question your decisions or if the court reviews your administration of the estate.

Step 8: Consult with Experienced Professionals

Probate sales involve unique legal and practical concerns. Work with a probate attorney who understands California law and can advise on your obligations. Consider consulting with an insurance broker like those at Trust Properties USA, experienced in estate and probate situations—they understand the specialized coverage needs that standard agents may not encounter regularly. These professional relationships reduce your risk and help ensure full compliance with California probate requirements. Contact Trust Properties USA today to learn more. 

How Does Trust Properties USA Help with Probate Insurance Challenges?

When you sell an inherited property through Trust Properties USA, you don’t have to handle tenant situations, insurance complications, or probate requirements alone. We coordinate every aspect of the sale with qualified legal counsel and insurance professionals to ensure full compliance with California law while protecting estate assets throughout the process.

Our comprehensive probate real estate services include:

• Insurance assessment and coordination: We help you identify current coverage gaps and connect you with insurance professionals experienced in probate and vacant property situations.
• Legal coordination: We work alongside your probate attorney to ensure all insurance requirements meet California Probate Code standards.
• Property protection during transition: We can arrange property securing, monitoring services, and regular inspections to minimize insurance risks and maintain coverage validity.
• Expert guidance on specialized coverage: Whether you need vacant property insurance, landlord coverage for temporary rentals, or builder’s risk for necessary repairs, we guide you through the options.
• Documentation and compliance: We help you maintain the detailed records courts expect, including all insurance-related decisions and expenditures.
• Coordination of repairs and maintenance: If insurance claims become necessary, or if you need to address issues to maintain coverage, we coordinate qualified contractors and document all work performed.

Importantly, you pay nothing upfront for these services. We handle the entire process, and our fees come out of escrow at closing. This means you can proceed with proper insurance protection and professional guidance without worrying about mounting costs during an already stressful time.

Behind every inherited house is a family navigating grief and complex legal requirements. We’re here to lift that burden while ensuring your property stays protected every step of the way.

Contact Trust Properties USA Today

If you’re handling a California probate estate with real property and need guidance on insurance requirements, property protection, or the entire sales process, we’re ready to help.

Call us today at (800) 579-4380 to speak with a compassionate, experienced professional, or contact us online to discuss your inherited property situation. We handle insurance challenges, tenant issues, and probate sales in full compliance with California law—with no upfront cost to you.

Best, Maya

Maya Bovshow, CEO
Trust Properties USA

Maximizing the Equity Your Family Took a Lifetime to Build

IMPORTANT DISCLAIMER: This article provides general educational information about insurance issues during probate real estate sales and is not intended as legal or insurance advice. Insurance requirements, coverage options, and legal obligations vary based on specific circumstances and change frequently. Every estate situation is unique and may involve complex issues requiring professional guidance. Always consult with a qualified probate attorney licensed in your state and an experienced insurance professional before making decisions about estate property coverage. The information provided here should not be relied upon as a substitute for professional legal or insurance advice specific to your circumstances.

If you are dealing with a property in probate or trust, call us today at 📞 1-800-579-4380