Probate property insurance

Probate property insurance is a specialized policy that protects real estate assets during probate proceedings, which occur after an owner’s death. Insurers such as State Farm and Allstate offer probate property insurance to cover risks like fire, theft, or vandalism while the estate is unsettled.

Probate courts in states including California and Florida often require executors to maintain active property coverage until title transfer. Standard homeowners policies typically lapse upon the owner’s death, so probate property insurance fills this gap for estates with vacant homes or commercial properties.

Premiums for probate property insurance average $1,200–$2,500 annually depending on location and vacancy status according to National Association of Insurance Commissioners (NAIC) data from 2023. Claims under probate property insurance pay out directly to the estate rather than individual heirs or beneficiaries.

Policies can be customized with endorsements for liability protection if contractors or visitors access the premises during probate sales or repairs, the Insurance Information Database reports. Lenders frequently mandate proof of continuous coverage through probate when mortgages remain outstanding on inherited properties.

Executors must notify insurers promptly about ownership changes since failure to secure appropriate coverage exposes estates to uninsured loss risk per Uniform Probate Code guidelines adopted by 18 states as of 2024.