What factors should be considered when selecting an insurer for a property in probate?

The most suitable insurer for a property in probate is one that understands estate ownership, can assess the property on the correct basis and explains its policy conditions in writing. Selection should therefore go beyond comparing premiums: verify the insurer’s regulatory status, probate experience, treatment of executors and beneficiaries, valuation requirements, documentation and arrangements for changing the policy when the estate is settled.

Check who is entitled to arrange the policy. Before requesting quotations, establish whether the policyholder should be the executor, administrator, personal representative or another person with a recognised insurable interest. The insurer should explain what evidence it needs, such as a grant of probate, letters of administration, a will, proof of ownership or confirmation of the applicant’s authority to act for the estate. If more than one personal representative is involved, ask whether all representatives must be named or whether one can administer the policy on behalf of the estate.

Do not assume that the person living at the property, a beneficiary or a relative can automatically arrange cover. An incorrect policyholder or incomplete disclosure of the ownership position could create problems if the insurer later investigates a claim.

Assess the insurer’s probate and estate-property expertise. Ask direct questions about experience with properties awaiting distribution, sale or transfer. A suitable insurer should be able to explain how it handles issues such as:

• an executor arranging cover before the estate has been distributed;
• multiple beneficiaries with an interest in the property;
• a property being marketed for sale while the estate is administered;
• alterations needed before sale or occupation;
• a change from estate ownership to ownership by a beneficiary or purchaser; and
• cancellation, amendment or renewal when the probate process ends.

Experience in this area matters because a standard household policy may be designed for an owner-occupier rather than an estate managed by personal representatives. Ask for the relevant policy wording rather than relying only on a summary or verbal description.

Compare the basis used to calculate a claim. Buildings insurance commonly relates to the cost of rebuilding rather than the property’s sale price or probate valuation. Ask how the insurer expects the rebuilding figure to be established and whether it requires a professional valuation for an unusual, listed, historic or non-standard building. Clarify how features such as outbuildings, boundary walls, garages, sheds, fixtures and professional fees are treated.

Contents also require careful consideration. The estate may contain furniture, personal possessions, valuable items or documents belonging to several people. Ask whether the policy covers estate contents, whether high-value items need to be separately declared and how ownership or valuation evidence should be provided. An insurer that cannot give a clear answer about estate contents may not be suitable for a complex probate property.

Review the policy administration requirements. Probate can involve changes in representatives, ownership and use of the property. Find out how amendments are made and what documents will be required. It is sensible to ask:

• who may request changes to the policy;
• whether the insurer must be notified when the property is put up for sale;
• what happens when a beneficiary moves in or the property is transferred;
• how a new owner can arrange replacement cover before completion; and
• how refunds, cancellation and policy changes are calculated.

Obtain any agreed amendments in writing. A telephone assurance that a particular arrangement is acceptable should not replace an updated schedule or written endorsement.

Consider the insurer’s financial and regulatory standing. Confirm that the insurer is authorised to conduct the relevant business in the UK by checking the Financial Conduct Authority’s register. If using a broker or intermediary, check that it is authorised for the services it provides and establish whether it is acting for the customer, the insurer or both. Read the complaints procedure and identify the appropriate escalation route if a dispute cannot be resolved directly.

It is also useful to distinguish between an insurer and a comparison or arranging service. The company named as the underwriter in the policy documents is the party responsible for the insured risk. Make sure you know whom to contact for policy changes, claims and complaints, particularly if different organisations handle these functions.

Judge quotations on the total contractual position. A lower premium is not necessarily better if it comes with a larger financial contribution from the estate, narrower protection or administrative conditions that are difficult to meet. Compare quotations using the same information and record the assumptions supplied to each insurer. Check the policy schedule, endorsements, proposal answers and any statement of demands and needs before choosing.

Finally, keep a file containing the quotation, full wording, schedule, declarations, photographs, valuation information and correspondence with the insurer. The personal representative should tell the insurer about material changes and keep evidence that relevant conditions have been followed. Selecting an insurer that gives clear written answers and can accommodate changes in estate ownership reduces the risk of uncertainty during administration.