Insurance (Buildings&contents)

[joddington]

If a single policy holder dies owning a paid up annual policy does this policy die with the person or is it covered until policy date runs out?

[Buenchico]

Quote:
"Most policies terminate on the death of the main policy holder"

Source:
https://www.moneyadviceservice.org.uk/en/articles/dealing-with-finances-and-insurance-after-your-partner-dies

[Old_Geezer]

That surprises me. The cover was paid for a period, one would have expected that the death of the person who paid would have no effect. I suppose that there is a question as to who one pays money too, but that ought not be too difficult to rule on.

Presumably, as a respectable insurance company, they return the rest of the premium.

Sounds a bit off if one died in the incident that would have triggered a payout. A fire perhaps.

[EDDIE51]

OG it is the policy holder who has the insurance , he dies so the policy dies with him.

[EDDIE51]

If you died in the incident the policy would still pay out as you were alive when the incident started.

[Old_Geezer]

It seems strange to me, as someone not in the industry, that insurance of a building and contents can be tied to the person who paid instead. Now if the building died ...

[bednobs]

the dead person no longer has an insurable interest in whatever is insured

[woofgang]

Do you mean that a year’s insurance has been purchased? Because traditionally in life insurance, a paid up policy means that no more payment is due ever....
When my mother died, her buildings and contents policy which had around six months to run on it stayed “live” and was taken over by the estate.

[BRIGHT SPARK]

The policy will generally be taken over by the executor(s) in this instance.

[sandmaster]

An insurance policy is a contract and the company needs to be advised as soon as possible. Most companies would honour a claim in a reasonable period after the death but the risk has altered and they need to know. You may have problems if the property is now unoccupied as most insurers will not provide cover. If the policy is cancelled there may be a refund of premium but there is usually a charge.