Death and Insurance (No Tax), Part 1

Enjoy our friend Christopher Boggs, Chief Consultant for Boggs Risk and Insurance Consulting.

I’ve been thinking about death lately. Partly for work reasons, but mostly for personal reasons.

Please understand that I am neither morbid nor about the pain of death. I wrote it from a pragmatic perspective.

No one likes to think about death, and talk less about death. However, death is a reality that cannot be avoided forever – regardless of the supplements taken, aerobic exercise or the miracle cleaning measures experienced.

Apart from life insurance, few people consider the meaning of death.

My wife’s parents died soon a few months ago – 13 days apart. As you might guess, this creates a whirlwind of emotions and activities. Due to my work, these events have raised issues with insurance – especially homeowners and automatic insurance.

Her parents have houses, personal property, cars and land. Although both of them disappeared, exposure to property damage and liability claims did not follow. The house and personal property are exposed by the same property; the land still has the potential to cause injury to a third party, resulting in charges of negligence. The car continues to present liability and physical damage exposure.

These insurance exposures continue to be the estate as well as the heirs before ownership of these assets can be transferred through probate or trust.

If anything, how are these ongoing exposures that continue to be managed by the deceased’s homeowner (HO) policy and personal car policy (PAP)? Questions to consider include:

• Does the Coverage Form extend coverage to anyone other than the deceased who has been named the Insured?
• Is there a potential coverage gap?

HO and PAP address death and insurance protection; but everyone’s response is unique. Let’s quickly review these two policies based on the previous two issues.

Homeowner’s Policy

Death and some of the insurance implications are addressed in the final paragraph of the Insurance Services Office (ISO) Homeowner (HO) policy.

G. Paragraph. Conditions of Articles I and II The name insurer extends or extends the insurance status after his death. This situation does not change the coverage; those covered after death will change due to this situation.

Paragraph G.1 if the designated insured or resident spouse (if not the designated insured) dies. Expand protection to include deceased insured persons Legal representative.

Protection extended to legal representation is limited. The policy language extends protection to legal representatives to cover property damage and only real estate liability.

• The attribute is not defined in this case. It is presumed that the coverage extends to the true and personal property of the insured person now under the care, custody and control of designated legal representatives.
• The scope of liability coverage is limited to housing liability. premise This condition-based grant or coverage is not defined, but a reasonable assumption is that this housing liability extends only to the definition of “places of residence” that belongs to the strategy, including the places listed in the strategy and all structures on the premises.

Potential coverage gaps are created by this language. Please note again that coverage extends to designated legal representatives. Appointing a legal representative is not immediately. It may take several weeks before appointing or approving a legal representative.

How does the policy respond between the death of a designated insured person and the appointment of a legal representative? Are any loss of property or liability covered during this period?

Paragraph G.2. This time period is managed by expanding the definition of “insured” after death of a designated insured or spouse, if not the designated insured:

• The insured’s premises are already defined as the “insured” of the policy; and
• Anyone with proper and temporary custody of the insured property- until the appointment of a legal representative.

Residents are insured

Anyone who resides in the House and is defined as a “insurance” policy, as long as: 1) the policy is effective in the name of the deceased insured (S) and 2), the policy is effective, and 2) the person resides in the house.

Residents who have obtained insured status and continue to protect and under this condition during the lifespan of the named insured person include:

• Resident relatives no matter how old they are;
• Non-resident residents under the age of 21 under the care of designated insured persons or relatives of the resident; and
• A former resident relative moved to school and was less than 24 years old.

As long as the policy is effective, the coverage of property and liability provided by the policy will be extended to these residents and insured persons. But property coverage may be limited to property owned by the insured – real estate may not be included.

Persons under temporary custody

Someone obtained temporary custody of the property of the designated insured person after his death. But the identity of the insurer is granted only to that person or those Appropriate Naming the insured’s custody of the property.

Appropriate Not defined in form, so its application will be explained. A reasonable explanation Proper custody Protectives may be limited by those associated with or regularly cared for by the insured. Many times, this is the one who ends up being appointed as a legal representative, but that is not always the case.

Please note that the coverage of this extended insurance is limited to property damage only. These temporary caregivers have no liability for coverage.

in conclusion

ISO’s HO policy seems to fully address the exposure of various homeowners that remain after the insured’s death; at least to the possibility of other coverage arrangements.

Operator underwriting guidelines, real estate plans (such as trusts) and other external factors may or may ultimately affect coverage, but short-term insurance issues appear to be reasonably managed through the HO coverage table.