What Happens to Home Insurance Coverage When the Policyholder Passes Away?

By Brad Davis, CIC (August 25, 2025)

Losing a loved one is never easy. Along with the emotional stress, families are often left managing a long list of practical matters – everything from probate to mortgage payments to making sure the home itself remains protected. One common question we hear is: what happens to a homeowners insurance policy when the policyholder passes away?

The good news is that most homeowners policies, including the widely used HO-3 form*, have a provision known as the "Death Clause." This clause ensures that coverage doesn't simply vanish the moment the insured passes. Instead, protection continues for the estate, legal representatives, and in some cases, relatives who remain in the home.

Let's break down what this typically looks like, why it matters, and what you should know about variations from policy to policy.

*The link above is a sample copy of an unendorsed Homeowners 3 – Special Form (HO-3 policy), the 1999 version. There are other versions used and they differ slightly.

Understanding the Death Clause in Homeowners Insurance

Buried in the "Conditions" section of most HO-3 homeowners policies is a short but important provision: if the named insured (or their resident spouse) dies, coverage continues.

Specifically, the clause generally provides that:

• The legal representative of the deceased (such as the executor or administrator of the estate) is considered an insured, but only for the premises and property covered under the policy at the time of death.

• Household members who were living in the home at the time of death remain insured, as long as they continue to live at the residence.

• Anyone temporarily caring for the property before a legal representative is appointed is also protected in connection with the property.

In other words, the policy doesn't simply terminate. It adapts to protect the home and those responsible for it while ownership is in transition.

READ YOUR POLICY for full details!

Why This Matters for Families and Estates

The Death Clause helps prevent a dangerous gap in coverage. Imagine if the policy were to end the moment the homeowner passed away – there would be no protection if a fire, storm, or liability claim occurred during probate. The estate could be left financially exposed.

By extending coverage to the estate and legal representatives, the insurance company ensures that the property remains protected while:

• Probate is being completed

• The home is being prepared for sale

• Heirs are arranging financing or transferring ownership

This protection is especially critical if the home has a mortgage, since lenders typically require continuous coverage.

Estate Planning – While I am on this topic I want to share a blog I wrote earlier this month about the importance of Estate Planning.

Limitations You Should Be Aware Of

While the Death Clause provides peace of mind, it's important to understand its limits:

• Coverage doesn't last forever. Once ownership changes – whether the home is sold, refinanced, or legally transferred to heirs—the new owner must obtain their own homeowners insurance policy.

• Not all policies are HO-3. While HO-3 is one of the most common forms, insurance companies may use other policy types (like HO-5 or HO-8) or company-specific forms. Each may word the clause differently – or in rare cases, not include it at all.

• Endorsements may modify coverage. Policies can be customized with endorsements that add, remove, or change provisions. This means the Death Clause (and other terms) may look different than in a standard form.

• Vacancy concerns. If the home becomes vacant after the insured passes, coverage could be limited. Many policies reduce or exclude certain coverages (like vandalism or water damage) if a home sits unoccupied for a specified time.

What To Do After a Policyholder Passes Away

If you're handling the estate of someone who had homeowners insurance, here are a few steps to take:

1. Notify the insurance company promptly. Let them know the policyholder has passed, and provide the name of the legal representative (executor, administrator, or attorney).

2. Continue paying premiums. The policy remains in force as long as payments are made, so don't let it lapse accidentally.

3. Ask about endorsements and vacancy rules. Every policy is different – check whether the home will still be covered if it remains empty for a period of time.

4. Update coverage when ownership changes. Once the estate transfers the home to heirs or sells it, the new owners should obtain their own policy immediately.

A Note on South Carolina and North Carolina Homeowners

While this issue applies about everywhere in the U.S., it comes up frequently in states like South Carolina and North Carolina, where many homes are passed down through generations. Whether it's a family beach house along the Grand Strand or a longtime residence in Charlotte, heirs often need to maintain coverage during estate proceedings before transferring ownership.

You can READ MORE about our Home Insurance products for the Carolinas.

Final Thoughts

A loved one's passing brings enough challenges without worrying about losing homeowners insurance. Thankfully, most standard policies have a Death Clause to ensure that coverage continues for the estate, household members, and legal representatives until proper arrangements are made.

That said, homeowners policies can vary significantly. Not every insurer uses the HO-3 form, and endorsements may change or even remove certain protections. Always review the actual policy language and consult with an insurance professional for advice tailored to your situation.

Disclaimer

This blog is for general informational purposes only. Every policy is different, and coverage may vary depending on your insurer, endorsements, and state laws. Be sure to review your own policy and consult with your insurance advisor for guidance specific to your circumstances.