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When you bequeath a house to a loved one, there is a lot of information to include in your estate planning documents. For example, it is essential that the beneficiary has access to the homeowners insurance policy. Even if the policyholder passes away, the new homeowner should be able to transfer the policy, so the property retains continuous coverage. Below, the legal team at The Law Offices of Katzman, Logan, Halper and Bennett, LPA in Cincinnati, OH, shares a few other things you should know about homeowners insurance and how it pertains to estate planning:

The Beneficiary Must Take the First Step

If you inherit a home, you need to notify the insurance company of your loved one’s death so you can transfer the policy to your name. This will allow you to continue making payments on the policy, so it remains active. You will likely have a lot of paperwork following your relative’s death, but the insurance company is not going to reach out to you regarding the policy. They will, however, send a cancellation notice if you fail to continue paying the premiums.

The Beneficiary Must Maintain the Home

Insurance companies like to see that someone is living in the home because it means damage will not go unnoticed for an extended period. If you cannot live in the home and you do not rent it out, you must keep it in an inhabitable condition to retain your coverage.

The estate planningBeneficiary Must Eventually Get a New Policy

When the policy expires, you will need to get a new one under your own name. Do some research to find the best rate, because the current insurance provider may not offer the most affordable option.  

An estate planning attorney who specializes in wills and trusts will always remind clients to include their homeowners insurance information in their documents. This allows beneficiaries to retain coverage of the home until they get a policy under their own name—and you never want to own a property that does not have insurance.

If you have questions regarding estate planning or insurance claims, turn to The Law Offices of Katzman, Logan, Halper and Bennett, LPA in Cincinnati, OH. You can learn more about their broad range of practice areas by visiting their website. To schedule an initial consultation, call (513) 793-4400. 

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