Insurance - Home Has Multiple Owners

[michstip]

Our father passed away and ownership of his home transferred to his 4 heirs (me and my 3 brothers). None of us live in the home. How do you get homeowners insurance for a home with 4 owners?

I have been asked to "take care of things," but if I purchase the policy and I only have a 25% interest in the home, how will that work if we have to make a claim?

Thanks VERY much for any guidance.

 

[Accelerated]

If you get a power of attorney from the other interest holders, it will make things go much more smoothly. I have run into this on many occasions, and it can be a problem if the stakeholders reside in different states.

Another option is to put the dwelling in a trust or an LLC or some other entity in which if there is a claim, the insurer can pay out with a single check to the entity rather than the various interest holders.
Otherwise, if you did file a claim, you could end up with a check and release of all claims with 4 names on it, and if any of your siblings live out of state, it could be difficult to cash the check and make repairs.

 

[blue_wynd]

Our father passed away and ownership of his home transferred to his 4 heirs (me and my 3 brothers). None of us live in the home. How do you get homeowners insurance for a home with 4 owners?

I have been asked to "take care of things," but if I purchase the policy and I only have a 25% interest in the home, how will that work if we have to make a claim?

Thanks VERY much for any guidance.

Go buy a dwelling policy since none of you live in the home. Make sure it covers vacancies. Put yourself as the named insured and add your bothers as additional insured. Call your insurance agent and have him/her help you if they are incensed in that state. If not, find someone in the area.

 

[InsuranceHelperGuy]

Have everyone involved give you the power of attorney. That will save you so much paperwork and headache you wouldn't believe me. Having one person be the final and deciding voice is so much easier that having everything split between multiple people.

 

[Jon Nickolas]

You call an insurance company and tell them you want to purchase insurance on a home that you and your 3 siblings own. Be sure to tell them you rent it out.​

 

[azhomeownersins]

Call a local insurance agent. Make sure you have a conversation about what your future plans are for the property. If you are going to sell it and it will be vacant until that point you need to make sure you have the proper policy.

A local independent agent will guide you thru the process. A Power of Attorney will helpful regardless the direction you go.