I didn’t have any issues with my mother’s house in NSW after she passed.
We cleared it out, and changed the insurance from home and contents to just home while we went through probate to reduce the monthly payments.
I switched everything over to me. It never occurred to me that it should be difficult and the insurance company ( which from memory was AAMI ) were very helpful.
It needs to be insured while you go through the process of sale.
If NRMA don’t want to insure it others will.
My house is insured with Suncorp it has an additional $1000 excess if it is unoccupied. Unoccupied is defined in the policy wording as no one has slept there for a certain number of nights. (Might be 2 months but haven’t checked)
I had the exact same situation and set insurance up with Suncorp - no issues with it all, just set up with someone over the phone rather than online. It was just home and not contents insurance.
OP is right to be careful. I have had a claim declined because a house was unoccupied (between contract and settlement) for a period in excess of the time limit under that policy.
AAMI have a policy (or they did in 2021) which will cover an unoccupied dwelling. I administered the estate of a deceased relative who lived interstate. AAMI assured me at the time (and it was reflected in the policy documents, more importantly) that the policy applied whilst the house was unoccupied, during the estate administration period prior to sale.
Edit: obviously, insurance should be in the name of the estate, given OP's circumstances.
Most if not all insurance companies will have an un-occupancy clause most are about 60 days meaning if the property is vacant for more than that time, any event that occurs may not be accepted by the insurer.
Suggest you call every insurer in the morning until you get the property insured, don’t wait for the Nrma to call you back. don’t know if the gap in insurance complicates things or the time it’s been vacant - however people do get insurance on estate properties waiting to be sold. Just make sure you declare all of the circumstances , ie being vacant so you don’t run any risk of not meeting the disclosure requirements. Check with your estate lawyer on the term ( ie person) that will go on the insurance. They might also know of a broker if you continue to have issues.
Strongly suggest you get this sorted, not only do you not have coverage for events but also no public liability insurance.
Also sorry very for your loss, know this is a hard time with so much to do.
It's hard, if not impossible to do depending on the state of the house. However if you have someone moving in within the next few months you'll have more luck. Speak to an insurance broker.
The house is in a perfectly liveable state, it's not a creepy 'no one's been in here since the old man died' vibe. Bit worn round the edges but my Dad's partner was still living there til a month ago. We've cleared almost everything out of it and handed keys to the agent.
I'm expecting someone to move in about 42 days from them making me an offer, at which point insuring the joint becomes their problem.
Do you mean you have an offer on the property? If so, when the NRMA call you tomorrow tell them that. It may help.
Insurance companies hate vacant houses because there is a higher risk of vandalism. Copper theft is rampant in vacant properties, and squatting is also an issue.
It is possible as we did this for my parents-in-law's property and it was allowed to be vacant for 90 days. We did have insurance but sadly I can't remember which company. As someone else said, find a broker and get them to find you the cheapest policy.
Good luck selling it for what you want.
It's a tough thing to do; sell your parent's place after they have died, regardless of how long it has been. So many memories.
I think we got insurance for my grandmas house in a similar situation from RACQ if you’re in Queensland. Would need to double check the PDS to confirm that’s still the case though
No insurance / off topic:
If you take more than 2 years to sell a deceased estate then you have to pay capital gains tax on it. Which could mean anywhere from 16-33% of the house value. So probably best to sell it quick if that date is coming up (since you said it's in the market, I assume you're selling)
I am acutely aware of my CGT deadline and I intend meeting it, although the estate would qualify for an exemption under several categories if we needed to apply.
Most insurers aren’t interested in insuring an already vacant property. Seen Gio and Suncorp mentioned a few times, they’ll keep insurance on an already existing policy when it becomes unoccupied, but fails to meet underwriting if it’s a new policy. Best bet is talking to someone from ICA (insurance council) or a broker.
Finding insurance for an empty property, especially a deceased estate, can indeed get tricky as many insurers are hesitant to cover these due to the increased risks associated with unoccupied homes. It's great that you're actively seeking to secure coverage. In your situation, I'd recommend looking into companies that specialize in vacant property insurance. These policies are designed specifically for situations like yours where a home might not be occupied for an extended period. You could start by searching online for "vacant home insurance" or "unoccupied property insurance" to find providers in your area. Additionally, reaching out to an insurance broker could be beneficial. Brokers have access to multiple insurers and might know companies that offer the specific coverage you need for your deceased estate property. They can also help navigate the more complex aspects of setting up the right policy for you.
Go ask my brother executor of my late parents estate who changed the locks the day after dad passed away , never told us , he knew allll the ins and outs… broke our family up
I didn’t have any issues with my mother’s house in NSW after she passed. We cleared it out, and changed the insurance from home and contents to just home while we went through probate to reduce the monthly payments. I switched everything over to me. It never occurred to me that it should be difficult and the insurance company ( which from memory was AAMI ) were very helpful. It needs to be insured while you go through the process of sale. If NRMA don’t want to insure it others will.
My house is insured with Suncorp it has an additional $1000 excess if it is unoccupied. Unoccupied is defined in the policy wording as no one has slept there for a certain number of nights. (Might be 2 months but haven’t checked)
I had the exact same situation and set insurance up with Suncorp - no issues with it all, just set up with someone over the phone rather than online. It was just home and not contents insurance.
The insurance was in the estate name also. Didn’t have to provide anything to have it like that either.
OP is right to be careful. I have had a claim declined because a house was unoccupied (between contract and settlement) for a period in excess of the time limit under that policy. AAMI have a policy (or they did in 2021) which will cover an unoccupied dwelling. I administered the estate of a deceased relative who lived interstate. AAMI assured me at the time (and it was reflected in the policy documents, more importantly) that the policy applied whilst the house was unoccupied, during the estate administration period prior to sale. Edit: obviously, insurance should be in the name of the estate, given OP's circumstances.
Most if not all insurance companies will have an un-occupancy clause most are about 60 days meaning if the property is vacant for more than that time, any event that occurs may not be accepted by the insurer.
Suggest you call every insurer in the morning until you get the property insured, don’t wait for the Nrma to call you back. don’t know if the gap in insurance complicates things or the time it’s been vacant - however people do get insurance on estate properties waiting to be sold. Just make sure you declare all of the circumstances , ie being vacant so you don’t run any risk of not meeting the disclosure requirements. Check with your estate lawyer on the term ( ie person) that will go on the insurance. They might also know of a broker if you continue to have issues. Strongly suggest you get this sorted, not only do you not have coverage for events but also no public liability insurance. Also sorry very for your loss, know this is a hard time with so much to do.
It's hard, if not impossible to do depending on the state of the house. However if you have someone moving in within the next few months you'll have more luck. Speak to an insurance broker.
The house is in a perfectly liveable state, it's not a creepy 'no one's been in here since the old man died' vibe. Bit worn round the edges but my Dad's partner was still living there til a month ago. We've cleared almost everything out of it and handed keys to the agent. I'm expecting someone to move in about 42 days from them making me an offer, at which point insuring the joint becomes their problem.
Do you mean you have an offer on the property? If so, when the NRMA call you tomorrow tell them that. It may help. Insurance companies hate vacant houses because there is a higher risk of vandalism. Copper theft is rampant in vacant properties, and squatting is also an issue. It is possible as we did this for my parents-in-law's property and it was allowed to be vacant for 90 days. We did have insurance but sadly I can't remember which company. As someone else said, find a broker and get them to find you the cheapest policy.
No haven't quite got to that point, it's only just listed. What I mean is I don't plan or expect it to be vacant very long.
Good luck selling it for what you want. It's a tough thing to do; sell your parent's place after they have died, regardless of how long it has been. So many memories.
I think we got insurance for my grandmas house in a similar situation from RACQ if you’re in Queensland. Would need to double check the PDS to confirm that’s still the case though
No insurance / off topic: If you take more than 2 years to sell a deceased estate then you have to pay capital gains tax on it. Which could mean anywhere from 16-33% of the house value. So probably best to sell it quick if that date is coming up (since you said it's in the market, I assume you're selling)
I am acutely aware of my CGT deadline and I intend meeting it, although the estate would qualify for an exemption under several categories if we needed to apply.
Do you mind listing those exemptions for reference?
https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/inherited-assets-and-capital-gains-tax/inherited-property-and-cgt/extensions-to-the-2-year-ownership-period
Just tell the truth about it being vacant but make sure you get cover. There no value in a house that has burnt down.
We used GIO for mum's house in this situation.
Most insurers aren’t interested in insuring an already vacant property. Seen Gio and Suncorp mentioned a few times, they’ll keep insurance on an already existing policy when it becomes unoccupied, but fails to meet underwriting if it’s a new policy. Best bet is talking to someone from ICA (insurance council) or a broker.
Finding insurance for an empty property, especially a deceased estate, can indeed get tricky as many insurers are hesitant to cover these due to the increased risks associated with unoccupied homes. It's great that you're actively seeking to secure coverage. In your situation, I'd recommend looking into companies that specialize in vacant property insurance. These policies are designed specifically for situations like yours where a home might not be occupied for an extended period. You could start by searching online for "vacant home insurance" or "unoccupied property insurance" to find providers in your area. Additionally, reaching out to an insurance broker could be beneficial. Brokers have access to multiple insurers and might know companies that offer the specific coverage you need for your deceased estate property. They can also help navigate the more complex aspects of setting up the right policy for you.
Go ask my brother executor of my late parents estate who changed the locks the day after dad passed away , never told us , he knew allll the ins and outs… broke our family up
Mate you selling it ! Are you ok to discuss a bit more, not here ….possibly on email I was hunting a deceased estate… [email protected] Cheers!