An executor for an estate in Queens recently called my office in a panic. Her mother had passed away two months prior, and she had just received a letter from the insurance company: her mother’s homeowner’s policy was being canceled. The reason? The house was now considered “vacant,” and the standard policy was void. She was terrified. What if there was a fire? A break-in? The single largest asset in her mother’s estate was completely uninsured, and she, as the fiduciary, was responsible.
This is a situation we see far too often. When a person passes away, their home enters a new legal status as an asset of the estate. The executor or administrator managing that estate steps into a role of immense responsibility. This is not just about paperwork and court filings. It is about stewardship. And one of the most immediate duties of that stewardship is protecting the estate’s physical property.
The Fiduciary Duty to Insure Estate Assets
When you are appointed by the Surrogate’s Court to act as an executor, you become a fiduciary. This is a legal term with significant weight. It means you have a legal and ethical obligation to act prudently and solely in the best interests of the estate and its beneficiaries. This duty includes gathering, managing, and—most importantly—preserving the value of the estate’s assets until they can be distributed.
For most New York families, the largest single asset is the home. Leaving it uninsured is a catastrophic breach of this fiduciary duty. Should something happen to the property—a fire, a flood, a liability claim from someone injured on the premises—the financial loss could be devastating. If the loss occurred because the executor failed to secure proper insurance, that executor could be held personally liable for the full value of the damage. Beneficiaries could sue, and the court could order the executor to personally repay the estate for the loss.
This responsibility is not just implied; it is codified in our state’s laws. New York’s Estates, Powers and Trusts Law (EPTL) § 11-1.1(b)(4) explicitly grants a fiduciary the power to “effect and keep in force fire, rent, title, liability, casualty or other insurance to protect the property of the estate.” While the statute frames this as a “power,” the courts interpret this alongside the overarching duty of prudence. Having the power to protect an asset creates the obligation to use that power wisely.
Why a Standard Homeowner’s Policy Is Often Not Enough
The problem my client in Queens faced is common because standard homeowner’s insurance policies are written for an owner-occupied residence. The insurer assumes someone is living there, maintaining the property, noticing small leaks before they become big floods, and deterring vandalism simply by being present.
When the homeowner dies, the house often becomes unoccupied. Insurance carriers have strict definitions for “unoccupied” versus “vacant.”
- An unoccupied home is one where the residents are temporarily away, but their furniture and personal belongings remain, and they intend to return.
- A vacant home is one that is empty of both people and personal property.
After a death, a home typically becomes unoccupied. Most standard policies have a clause that limits or voids coverage if a home is unoccupied for more than 30 or 60 days. The insurance company sees an empty house as a much higher risk for theft, vandalism, and unmitigated damage from burst pipes. An executor cannot simply continue paying the premiums on the decedent’s old policy and assume the property is protected. It almost certainly is not.
Securing the Correct Coverage for a Probate Property
As an executor, one of your first calls—after securing the property and notifying banks—should be to the decedent’s insurance broker. You must inform them of the owner’s death and your appointment as the estate’s representative. This conversation begins the process of securing the correct type of insurance.
You will likely need to obtain a “vacant home policy” or a “dwelling fire policy.” These policies are specifically designed for properties that are not owner-occupied. The coverage is different. It typically protects the structure from specific perils like fire, lightning, and wind, and it provides essential liability coverage. It may, however, exclude other risks, like water damage from frozen pipes unless the property is properly winterized, or theft of personal property left inside.
The cost will be higher than a standard homeowner’s policy, but this is a necessary and proper expense of the estate. It is a non-negotiable part of prudent management. In my practice, I advise every executor to document their efforts to secure insurance immediately. Keep records of your calls, the policies you reviewed, and the final binder you secured. This documentation is your proof that you fulfilled your fiduciary duty.
Stewardship. It’s about more than dividing assets; it’s about protecting a family’s legacy while it is in your care. Insurance is a fundamental tool for that protection, and getting it right is one of an executor’s most important jobs.
If you have been named an executor in a will and are preparing to administer an estate in New York, the responsibilities can feel overwhelming. To understand your immediate obligations, I invite you to schedule a fiduciary review with our firm where we can outline the critical first steps for protecting the estate’s assets.
