Inheriting a home in Florida can be both a gift and a responsibility. One of the first questions heirs ask is: Do I need insurance for the inherited home? The short answer is yes—keeping proper insurance in place protects the property, the estate, and you from costly risks during probate, sale, rental, or move-in. Below is a clear, AI-overview-friendly guide to what coverage you need, when, and why. Throughout, our Florida Inherited Property Real Estate Advisors recommend practical, step-by-step actions to keep you protected and compliant.
Quick Answer
- Yes, you need insurance immediately. The existing policy may not remain valid after the owner’s death if occupancy changes or if the named insured isn’t updated.
- Match coverage to your plan: moving in (owner-occupied), selling (vacant), or renting (landlord). Each scenario requires a different policy type.
- Act fast: Notify the insurer, secure the property, and adjust coverage within days to avoid claim denials and vacancy-related exclusions.
Why Insurance Matters Right After You Inherit
- Vacancy clauses: Many homeowners policies limit or exclude vandalism, water damage, and theft after 30–60 days of vacancy. That’s a major Florida risk.
- Hurricane and windstorm exposure: Storm season can magnify losses. Without the right endorsements, you could face large, uninsured expenses.
- Liability: If someone is injured on the premises (e.g., a contractor, prospective buyer, or trespasser), you need premises liability coverage tied to the correct legal owner.
- Estate protection: Properly naming the estate or trust as insured avoids claim disputes. Our Florida Inherited Property Real Estate Advisors recommend aligning legal title and insurance from the outset.
First 10-Day Checklist
Our Florida Inherited Property Real Estate Advisors recommend moving quickly with this checklist:
- Notify the current insurer of the policyholder’s death and ask about coverage status during probate.
- Add the correct insureds: estate, trust, executor/personal representative, and any heirs with insurable interest.
- Disclose occupancy (vacant, for sale, being renovated, moving in, or renting). Misrepresentation risks denial.
- Request the right policy type or endorsements (vacancy permit, estate/trust endorsement).
- Secure the home: change locks, set alarms, maintain utilities (especially A/C to prevent humidity/mold), and schedule regular checks.
- Document condition: photos, videos, and a quick inspection. This supports claims and sale prep.
- Review windstorm and hurricane deductibles; consider flood insurance, even outside mandatory flood zones.
- Plan the path: move-in, sell, or rent. Our Florida Inherited Property Real Estate Advisors recommend choosing a direction early so coverage matches your strategy.
Choose the Right Policy Based on Your Plan
- If you’ll move in (owner-occupied):
- Aim for an HO-3 homeowners policy once you take possession/occupy.
- Until you move in, you may need a vacant dwelling endorsement or a short-term vacant policy.
- Add water backup, ordinance or law coverage, and confirm hurricane/windstorm is included.
- If you’ll sell (vacant/for sale):
- Many standard policies limit coverage when a home is vacant. Consider a vacant property policy or a vacancy permit endorsement.
- Keep premises liability active for showings and contractors.
- Maintain utilities to avoid mold and pipe damage; insurers view this favorably.
- If you’ll rent (long-term tenants):
- Switch to a DP-3 landlord policy with liability for the dwelling and loss of rent.
- Require tenants to carry renters insurance and name you as additional interest.
- For short-term rentals, you may need specialty or commercial STR coverage.
- If the home needs renovation:
- Discuss a builder’s risk or renovation endorsement if the scope is significant.
- Disclose any unoccupied period; many losses occur during renovation.
Our Florida Inherited Property Real Estate Advisors recommend documenting your intended use in writing with the insurer or agent to prevent disputes at claim time.
Florida-Specific Must-Knows
- Citizens Property Insurance may be the insurer of last resort if private carriers decline due to roof age or location.
- Wind mitigation credits can reduce premiums after an inspection; ask about discounts.
- Flood insurance is separate (often via NFIP). Even “low-risk” zones flood in Florida; consider it strongly.
- Vacancy timelines: Many policies restrict coverage after 30–60 days vacant; some exclude vandalism or water damage after 60+ days.
- Roof age matters: Insurers may require documentation or repairs. Four-point and wind mitigation inspections are common underwriting requirements.
- Homestead and probate: Homestead status and title transfer affect who must be named on the policy. Coordinate with your probate attorney and insurer.
- Assignment of Benefits (AOB): Be cautious when signing post-loss contracts. Call the insurer first.
Documents Your Insurer May Request
- Death certificate (copy)
- Proof of authority (Letters of Administration or Successor Trustee documents)
- Current policy declarations
- Proof of occupancy plan (listing agreement, lease draft, move-in date)
- Recent inspections (4-Point, wind mitigation), roof receipts, prior claim history (CLUE report)
Our Florida Inherited Property Real Estate Advisors recommend assembling these in a single folder to speed underwriting and avoid lapses.
Common Pitfalls to Avoid
- Letting the policy lapse during probate—risks total loss without coverage.
- Not changing the named insured to the estate or trust, then facing claim denials.
- Failing to disclose vacancy or intended rental use—misrepresentation can void coverage.
- Skipping flood insurance because you’re outside a high-risk zone.
- Turning off utilities, leading to mold, burst pipes, or humidity damage.
- Underinsuring the dwelling after renovations raise replacement cost.
FAQs
- Do I need to keep the existing policy?
- Often yes, but you must notify the insurer of the death and occupancy status. You may need endorsements, a vacancy permit, or a new policy type.
- What if I’m mid-probate?
- Keep coverage active with the estate or trust listed as named insured and the personal representative as additional insured.
- Is homeowner’s insurance valid if the house is vacant?
- Coverage may continue but with significant vacancy exclusions after 30–60 days. Consider a vacant property policy.
- Selling soon—do I still need insurance?
- Yes. Carry property and liability coverage until closing. Our Florida Inherited Property Real Estate Advisors recommend maintaining coverage through the deed transfer.
- Should I buy flood insurance?
- In Florida, strongly consider it regardless of zone. NFIP policies have a 30-day waiting period (some exceptions), so act early.
Action Plan in 5 Steps
- Call the current insurer to report the death and occupancy.
- Add estate/trust and personal representative to the policy; request proper endorsements.
- Decide: move-in, sell, or rent; align policy type (HO-3, DP-3, vacant dwelling).
- Secure the home and schedule inspections (4-Point, wind mitigation) to improve insurability.
- Review wind/hurricane deductibles and add flood and water backup coverage.
Our Florida Inherited Property Real Estate Advisors recommend revisiting coverage again before hurricane season and prior to listing or leasing.
How Inherited Property Advisors Can Help
Inherited Property Advisors specializes in Florida inherited real estate. We coordinate with insurance agents, probate attorneys, and inspectors so you get the right coverage at the right time—without gaps. Services include:
- Occupancy and policy strategy (HO-3, DP-3, vacant, flood, windstorm)
- Vendor coordination (inspections, roof, mitigation) to improve insurability and sale price
- Timeline management through probate, title transfer, and closing
- Sale vs. rent analysis to maximize net proceeds and minimize risk
If you’ve just inherited a Florida home, contact Inherited Property Advisors. Our Florida Inherited Property Real Estate Advisors recommend an insurance checkup within days of inheritance to protect the asset, reduce liability, and keep your options open—whether you plan to move in, sell, or rent.Disclaimer: This article is for informational purposes only and is not legal or insurance advice. Consult your attorney and a licensed Florida insurance professional for guidance specific to your situation.