My dad passed away and I've inherited the family house (this is in California). My ultimate goal is to do some renovation (my dad wasn’t maintaining it so it needs work) with an eye towards renting it out.
Here’s where it gets tricky:
-The house is currently deeded to my dad’s trust of which I am now the sole trustee
-My dad’s homeowner's insurance policy is still active and is in his name, not the trust. The term goes until December
-I’m traveling quite a bit for work though I’m actively maintaining the house and going back to it every few weeks to work on it. I also have a property manager and other folks there working on it. Other than that no else is living there
-The most pressing need is a new roof. I have a friend and also my property manager who both know and use someone who is excellent, however they do this work unpermitted. They tell me it's very common in California.
-My attorney advised me not change the property insurance while things with the trust are still in motion with the trust so I've let it be
-My dad had USAA which I would qualify for as the child of a veteran
-At some point I will need to transfer the deed into my name (to get a HELOC among other things)
So I've got a house which might be considered unoccupied or vacant, renovation plans on the horizon, and which I'm planning to rent out once the work is done. It's also in a high risk fire area so I know that's going to cost me. Though my dad's current policy premium is surprisingly low.
Would love any thoughts on how to proceed.
Homeowner's insurance for inherited home
byu/keepingthefaith107 inInsurance
Posted by keepingthefaith107
2 Comments
Find a licensed contractor who will do a permitted roof. And ask your attorney about the legal questions.
Terrible advice from your attorney, I would reevaluate your relationship.
The insurance company looks to the insurable interest in the property at the time of loss. With the insurance in dad’s name, dad no longer with us, and the trust owning the property, it becomes less clear as to whether that insurable interest exists. Further to that point, the property is no longer occupied, so another material change that needs to be disclosed.
I would contact the insurance company and disclose all relevant information and see how they respond.