For many families, a home is the most valuable asset in an estate. Yet one of the most commonly overlooked risks following the death of a homeowner is a lapse in insurance coverage. Without proper attention, a property can become exposed to significant financial loss at precisely the time when fiduciaries are tasked with preserving and protecting estate assets.

This article explores the importance of maintaining homeowners insurance after death, the complications that arise during probate administration, and best practices for Trustees and court-appointed Personal Representatives to ensure continuous protection.

The Immediate Risk: Insurance Does Not Automatically Adjust After Death

When a homeowner passes away, their insurance policy does not simply “adapt” to the new legal reality. Most policies are tied to the named insured, and coverage can become uncertain or limited once that individual is deceased. Policies for married couples will typically name both spouses as insured parties, ensuring continuity on the death of one spouse. However, no transferability exists for other beneficiaries, such as surviving children or siblings.

While some insurers allow a short grace period, there is often a narrow window to notify the carrier and make necessary changes. This window is typically 30 days in Massachusetts, in which someone must notify the insurance provider of the owner’s death. Failure to act promptly can result in denied claims, coverage gaps, or even cancellation of the policy in its entirety.

Determining how to proceed will depend largely on how the property is legally titled. In Massachusetts, if someone dies with an asset titled in their individual name, the asset must pass through the probate court in order to determine the rightful legal heir(s). For a full overview of the Massachusetts Probate process, what happens if you die without a Will, and how proactive planning can eliminate the need for probate court, read our full legal blog here. This means that if someone holds title to their real estate in their individual capacity, it must go through the probate court to appoint a Personal Representative and determine the beneficiaries or legal heirs who will inherit the property.

If the homeowner had created an estate plan and retitled their home into the name of their Revocable or Irrevocable Trust, then it is likely the Trust was added as an “additional insured” to the policy. This will change the way a successor Trustee would handle a homeowners insurance policy following the death of the Settlor (the person who established the Trust). For a full overview of the benefits of a Revocable or Irrevocable Trust and how proactive estate planning can save you and your loved one’s thousands of dollars, read our full legal blog here.

Below we discuss how you should proceed with homeowners insurance following the death of a loved one based on how the property is titled.

Complications During Probate

When a home becomes part of a probate estate, insurance issues become more complex.

1. Ownership Uncertainty

During the probate process, title to the property is legally held in the name of the estate. Even with a Will in place that has undisputed beneficiaries, the estate holds title to all estate assets until court approval is granted and a distribution is made. This creates a disconnect because:

• The deceased individual is still the named insured; and
• Until the Personal Representative is formally appointed by the Court and receives “Letters of Authority,” (click here to read out full legal blog outlining the importance of Letters of Authority and how to obtain them) the insurer is not required to assist or update any active policy; and
• In Massachusetts it can take anywhere from 2-6 months (and oftentimes upwards of a year) following the initial filing of the probate petition just for the Personal Representative to receive their official appointment

This means that from the time the policyholder dies until the moment a Personal Representative is appointed to handle the estate, that property is significantly at risk because nobody is authorized to change the policy or file a claim.

2. Risk of Coverage Gaps

Although some policies remain in place temporarily, coverage may be limited or time-bound during probate administration. In certain cases, policies may terminate or significantly restrict coverage after death. Additionally, failure to notify the insurer of the death can jeopardize coverage altogether.

It is best to immediately contact the insurance provider to review all available options. Insurance companies are reluctant to add the estate to a policy, as they much prefer legal title to pass to the beneficiaries or legal heirs first. However, there are still options available to ensure coverage until the home is transferred to the new owners or sold entirely.

3. Vacant Property Issues

Homes in probate are often unoccupied, which presents a major insurance concern. It is not uncommon for providers to extinguish coverage altogether following the death of a homeowner if they determine that the home has gone vacant for a significant period of time.

• Many policies restrict or exclude coverage after 30–60 days of vacancy;
• Risks of damage such as vandalism, fire, or theft increases if the home falls vacant;
• Specialized “vacant home” or “estate” policies may be required, which can significantly increase the premiums on the policy.

4. Fiduciary Liability Exposure

Standard policies may not extend liability protection to fiduciaries managing the property. If someone is injured on the premises, especially if the home is vacant or uninsured, the estate, and potentially the Personal Representative, could be exposed to liability.

Pursuant to M.G.L. c.190B Article III § 3-709, the Personal Representative has a fiduciary duty to take possession and control of any and all property of the decedent. The statute further states in part:

“The Personal Representative shall pay taxes on, and take all steps reasonably necessary for the management, protection and preservation of, the estate in the Personal Representative's possession.”

Failure by the Personal Representative to secure, protect, and insure the decedent’s property can leave them subject to liability.

Homes Held in Trust: A Different (but Related) Risk

When a home is held in a Revocable or Irrevocable Trust, it will pass to the named beneficiaries outside of Probate. For a Revocable Trust structure, typically the original Settlor(s) (the person or persons establishing the trust) will also serve as Trustees during their lifetime. For an Irrevocable Trust structure used for MassHealth Long Term Care planning, the Settlor will name a separate Trustee to serve during their lifetime. For a full overview of the MassHealth application process and eligibility requirements, and strategies to protect your home from a future estate recovery lien, read our full legal blog here.

Both Trust structures will include succession language, that outlines who will step in as Trustee in the event that the current Trustee dies or becomes incapacitated. Once the Settlor dies, the Trustee then-serving will be responsible for the Trust property. While the trust structure avoids probate and creates a clear succession plan for management of the trust property, insurance coordination still remains critical.

When we prepare an estate plan that involves a Trust, we manage the entire process of retitling your real estate into the name of your Trust. We also provide you with an instructional packet, that you can simply handoff to your insurance agent. This ensures a seamless process to ensure they make the necessary updates to your policy to reflect the change in ownership to the trust.

Among other items, these instructions will request that the policy be updated to name the trust as an “additional insured.” This means that during the life of the Settlor of the Trust, they will be the “named insured” which grants them the broadest level of coverage as the primary occupants of the house. The Trust will be added as an “additional insured” to name them on the policy for liability protection.

If this step is done properly, carrying over insurance once the homeowner and Settlor of the Trust dies is far more straightforward. The Trustee should still alert the provider, but they will have significantly more options available to them without any potential gaps in coverage. Since the Trust is already on the policy, the home will continue to be covered following the death of the named insured. The Trustee can then decide if they would like to alter the coverage, or update the named insured based on who will be moving in to occupy the home.

If this step is missed however, and the Trust is not properly listed as an insured or additional insured, coverage may not apply in the event of a loss. In such event, the Trustee would alert the provider and get the Trust listed as a named insured or additional insured to avoid any disruption in coverage. This process is much easier when the home is in the name of the Trust, as it presents less risk to the provider as compared to the potential ambiguity and disruptions that can arise while a property is making its way through the probate court awaiting the appointment of a Personal Representative. In addition, this option is far less expensive than purchasing any applicable “vacancy” or “estate” temporary coverage plan.

What Fiduciaries Should Do After the Death of a Property Owner

Whether acting as a Trustee or Personal Representative, both roles carry fiduciary responsibilities to protect and preserve estate assets, including real estate. If you are in either role, following the death of a loved one you must:

1. Notify the Insurance Carrier Immediately;

2. Confirm How the Real Estate is Titled (Individual, Trust, LLC, etc.);

3. Confirm Coverage Status in Writing with the Provider;

4. Update the Named Insured and Additional Insured (where applicable);

5. Address Vacancy Issues;

6. Maintain Premium Payments;

7. Secure and Maintain the Property;

8. Consult Professionals as Needed.

The period following a homeowner’s death is filled with legal and emotional complexity. Unfortunately, insurance issues are often overlooked until a problem arises, at which point it may be too late.

Whether a property is passing through probate or held in trust, ensuring continuous and appropriate insurance coverage is a critical responsibility of fiduciaries to protect the property. Proper planning and timely action can prevent costly losses, protect beneficiaries, and preserve one of the estate’s most important assets.

 This blog is made available for educational purposes only as well as to give you general information and a general understanding of the law, not to provide specific legal advice. By reading this blog you understand that there is no attorney client relationship between you and Lane, Lane & Kelly, LLP.