DON'S DISCUSSION
DON'S DISCUSSION IA&B Legal & Corporate Affairs Director Don Bankus
Are you a member with a question? Contact Don to find the answer at 800-998-9644, ext. 603 or DonB@IABforME.com.
elderly insured passed away. An adult son who was caring for her resides in her QUESTION: An home. Does the insured’s Homeowners policy remain in effect after her passing?
ANSWER: Yes, but there may be limitations. Typically, a policy in place at the time of death remains in effect for the remainder of the policy period. Standard policy language in the ISO HO 02 through HO 06 and the ISO HO 08 reads: SECTION I and II - CONDITIONS G. Death If any person named in the Declarations or the spouse, if a resident of the same household, dies, the following apply: 1. We insure the legal representative of the deceased but only with respect to the premises and property of the deceased covered under the policy at the time of death; and 2. “Insured” includes: a. An “insured” who is a member of your household at the time of your death, but only while a resident of the “residence premises”; and b. With respect to your property, the person having proper temporary custody of the property until appointment and qualification of a legal representative. As a result, applicable coverages remain for the duration of the policy period, but at renewal the name of the insured should be updated to reflect the estate of the deceased insured.
STATE STATUTES AFFECTING COVERAGE Pennsylvania passed a law which modifies this ISO policy language. The statute includes:40 P.S. Section 636.1(a) – After-death continuation of basic property insurance (a) Basic property insurance shall be continued one hundred and eighty (180) days after the death of the named insured on the policy or until the sale of the property, whichever event occurs first, provides that the premiums for the coverage are paid. Therefore, if the policy is renewed and premium paid within 180 days after the named insured’s death, coverage remains in effect for up to 180 days after the insured’s passing, even if the policy was renewed in the name of the deceased. Pennsylvania-specific ISO language follows: G. Death … 2. Insurance under this policy will continue as provided in a. or b. below, whichever is later: a. For 180 days after your death regardless of the policy period shown in the Declarations, unless your premises and property, covered under the policy at the time of your death, are sold prior to that date; or b. Until the end of the policy period shown in the Declarations, unless
your premises and property, covered under the policy at the time of your death, are sold prior to that date. Coverage during the period of time after your death is subject to all the provisions of this policy including payment of any premium due for the policy period shown in the Declarations and any extension of that period…. In Delaware the Civil Union and Equality Act modified who is an insured under the ISO policies. Delawarespecific ISO language follows: DEFINITIONS A. In this policy, “you” and “your” refer to the “named insured” shown in the Declarations and: 1. The spouse; or 2. A party who, with the “named insured”, has entered into a civil union recognized under Delaware law; if a resident of the same household. G. Death If any person named in the Declarations or: 1. The spouse, if a resident of the same household; or 2. A party who, with the “named insured”, has entered into a civil union recognized under Delaware law, if a resident of the same household; dies, the following apply….
This document is not a legal opinion and should not be relied upon as such. The intent of this document is to provide a general background regarding the topic or topics discussed, not to provide legal advice. Producers and agencies should consult an attorney regarding specific situations and specific questions with respect to the topic or topics covered in this document. Neither the Insurance Agents & Brokers nor any of its employees shall be responsible for any errors or omissions regarding any statements made in this document, nor any errors or omissions regarding any statutes, regulations, court rules, and/or any other government documents cited in this document.
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