House Insurance ? WWYD?

[Tuffcookie]

My DM passed away in Dec. 2006. My sister & I were on the deed to her house. I contacted her insurance agent and let them know. I asked if we could keep the policy going and I would make the payments until such time that the house sold. This was agreed. They acted like they were doing me a favor. All this time I have been paying the premiums on this policy. Finally this year I got a letter from them stating I could lower the premiums by raising the deductibles. I decided to do that since we didn't know how much longer it would take for mom's house to sell. I got a refund check from the insurance co., in my mom's name, for the difference in deductibles. I contacted the insurance company to ask them to re-issue the check in my name. The agent said they couldn't do that because the policy was in my mom's name! I sent the check back to them and asked them to credit that amount on our next premium. I hope this is not too confusing to follow.

Well, PTL, the house sold. We close on Thursday! I contacted the insurance agent and let them know and asked that the credit check be issued in my name. The agent's secretary told me it would have to be in mom's name since the policy is in her name! I asked to speak to the owner. She said he was off recovering from surgery but she would run it by him when she talked to him.

I asked her, since they knew of mom's death, and had accepted my payments since her death on her policy, if I had found it necessary to file a claim, would it have been denied? She couldn't answer.

If I would have been denied, didn't they fraudulantly take my money? Maybe I should be asking for more than just the credit on what I paid on the latest installment.

What would you do?

TC

 

[DebbieB]

Who is the executor of the estate? They should be able to sign checks in your mother's name. You probably should have changed the policy to the name of the estate, that is what I did when my mom died.

 

[Tuffcookie]

We did not file in Probate Court. Mom signed everything over to my sister & me. (thru survivorships) and had no outstanding debt.

I'm upset thinking we had insurance all this time. Thank goodness nothing happened. But the agent had to know that any claims made by me would be declined and yet they took my money.

TC

 

[arminnie]

Just sign the check and deposit it.

 

[Keli]

What is the regulating agency over insurance companies? I would find out and contact them. Ask a few questions and see if this company was properly handing insuring the home after your mother's death.
If they wasn't acting properly in these transactions there will be some consequences to them but really they shouldn't be giving you so much hassle now and this is your only recourse.

 

[msmayor]

We did not file in Probate Court. Mom signed everything over to my sister & me. (thru survivorships) and had no outstanding debt.

I'm upset thinking we had insurance all this time. Thank goodness nothing happened. But the agent had to know that any claims made by me would be declined and yet they took my money.

TC

It shouldn't matter. Even with no assets, a deceased person has an "estate" to settle.

In reality, if your mother signed the house over to you and her sister then at THAT time, a new policy should have been written naming you both as the owners. While the agent indeed dropped the ball, in a way so did you by not making sure everything was done correctly when the asset was signed over to you.

The insurance company must, by law, make that check out in your mother's name. You may or may not be able to cash it without a problem; all depends on the bank.

 

[Tuffcookie]

In reality, if your mother signed the house over to you and her sister then at THAT time, a new policy should have been written naming you both as the owners.

Mom retained ownership of the house but sis & I were also listed so in the event of death ownership would transfer to us.

There was no estate to settle. Mom was a depression baby and did not leave any bills. Her funeral was prepaid.

I expected the insurance agent to know how to handle this. Sis & I have not gone thru this before. I should have been advised to cancel the policy and get another one in my name.

TC

 

[msmayor]

In reality, if your mother signed the house over to you and her sister then at THAT time, a new policy should have been written naming you both as the owners.

Mom retained ownership of the house but sis & I were also listed so in the event of death ownership would transfer to us.

There was no estate to settle. Mom was a depression baby and did not leave any bills. Her funeral was prepaid.

I expected the insurance agent to know how to handle this. Sis & I have not gone thru this before. I should have been advised to cancel the policy and get another one in my name.

TC

Everyone has an estate to settle. Everyone.

Are you saying she had no bank accounts at all? No social security benefits? No payments from anyone at any time? I don't understand how that could be possible. No tax returns filed?

 

[Tuffcookie]

The bank accounts were in all 3 of our names. I reported her deceased to all the required agencies and supplied them with certified copies of death certificates. She was not required to file a return because of income level.

It is not necessary to file thru probate court.

TC

 

[barkley]

Everyone has an estate to settle. Everyone.

Are you saying she had no bank accounts at all? No social security benefits? No payments from anyone at any time? I don't understand how that could be possible. No tax returns filed?

she may be saying that there was no estate necessitating probate, in which case there would not be an "executor". in some states, unless a formal probate proceeding is enacted it is not possible to become a legal "executor". because this can run a minimum of $7000 (again in some states), it becomes a cost consideration of weather you take this step when there is nothing else necessitating probate (like all accounts and assetts are p.o.d. or t.o.d.-which aviod probate). social security will take a death reporting from any family member, if the bank accounts are p.o.d. all that's needed is a certified death certificate, life insurance is exempt from probate....


you don't have to be an executor to file the final tax return-you can attest to the irs (simple form) that you have the legal right to file the claim on the deceased's behalf.


dh is handling his deceased mom's affairs-no probate. the 2009 taxes were filed, check was sent in dh's name from the irs. as far as her car/renter's insurance-we've provided the death certificates to the insurance company and they are issuing in his name as well.

as for checks that come in his mom's name only-that's the p.i.t.a.-banks won't cash or allow deposits into an account without her name on it, and those she had accounts with had to close them once notified of death. so, we have to call anyone who issues in her name alone, provide whatever form they have for this situation, and send a copy of the death certificate.

 

[DebbieB]

I would wait until the secretary talks to the owner of the insurance agency and gets back to you before doing anything else.

I would also be sure everything is in line with the estate. My aunt died and my cousin got everything by survivorship but he still had to file papers with the court.

 

[Pumbaa_]

the insurance company can't make checks out to whoever

the poliocy should have been changed over to your name

need to figure out how to cash the check since the insurance company can't reissue to a 'random' name

good luck

 

[GingerJay]

Maybe you could just write "for deposit only" on it and deposit it? It's worth a shot...

 

[kellydizfan]

How it would be done in here in NY regarding the insurance is your Mom should have had life tenantcy (SP?) as named insured with you and your sister as additional insureds so that you would have personal liability if something were to happen and it also would give your Mom coverage also. Then I don't think you would have had the problems you are having with the checks. Also 4 years I can't believe they left a homeowners policy on the house. If something were to happen during that time, you might not have had coverage as the house was unoccupied over 60 days or vacant - depending if you moved everything out of it or not. It should have been rewritten to a fire policy with a possible vacant surcharge on it. Regarding payments - they usually go to a different location than underwriting and usually a lock box for bank so the company wouldn't question who they are getting payments from as long as payment was made in a timely manner and policy # was on the check. Good luck with your refund.

 

[rlduvall]

I recently went through the same thing with my father's estate. Several utility companies and the Homeowner's insurance sent refund checks to me on behalf of my father - in my father's name. In my situation, my father had the foresight to set up a Living Revocable Trust 10 years earlier, with me as the Personal Representative/Power of Attorney. Even with that, the insurance company and utility companies would not issue the checks in my name.

I have been with the same Credit Union for over 25 years and, as a pp mentioned, they told me to just write "Deposit Only" and they would run it through. Never had any problems.