Anyone an insurance agent?

[runwad]

2 Questions:

1. My friends mom died 2 years ago. They had a TOD to my DF, the house is her's. She has it up for sale and is living in it until it does. She's never taken the insurance out of her mom's name and put into her's. Does she need to? she pays the premium out of her checking account.

2. Another friends mom passed and the house is vacant until it sells. They've not notified insurance that house if vacant. What if they don't, what would happen? I know when a house is vacant the insurance is more expensive but if they don't tell what will happen? I'm trying to gleen some info to pass along to them so they can all do the right thing.

Thanks for the help.

 

[2disneyboys]

I am a licensed agent in Virginia

1. THe insured has to be in the name on the house, as the "named insured' is the party that has the financial interest in the property.

2. Vacancy clauses on insurance policies generally vary -- It is going to increase the cost of the insurance, but as it is now, if there were a loss (fire etc) if the insurance were to discover the property was vacant, part if all of the loss may not be covered.

In both cases I would highly suggest the person to contact thier insurance agent or company and just make them aware of the circumstances and get thier advice. Laws vary state by state, and policy terms and conditions vary from carrier to carrier so it's really hard to say in either of these cases if the current owners would be protected by the policies they currently have. Its best to call and discuss this either with thier current agent, or if nothing else, with another agent maybe for a different company or independent insurance agency in that state as its best to make sure she is going to get the insurance coverage that she is paying for. Good Luck!