Insurance Coverage

Being an estate trustee has many serious responsibilities. Some are almost inconsequential and others are quite monumental.
If the deceased died with real property or other items of value such as jewelry, stamp collections, etc. it is important to review insurance policies to be sure there is adequate insurance.

There is a duty upon estate trustees to protect the estate for the beneficiaries. If a property burned down, was vandalized or water pipes burst causing water damage the estate trustee could be responsible.

Be sure to notify the insurance company in writing promptly concerning the deceased’s demise. Is the home vacant or is someone living in it? If the property is vacant the insurer might increase the premium to offset their increased risk. Be sure as well to get a “vacancy rider” from the insurance company to continue insurance protection until the property is sold or transferred to a new owner.
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Does the property have enough insurance? Underinsurance could create additional problems in the event of a fire, for instance. It is always advisable to speak with the insurance broker to make sure that there is adequate coverage and arrange for an increase in coverage if necessary.

This is a very important necessary step and should be dealt with promptly.

This article is not intended to be relied upon as legal advice but only to give the reader an overview of the law in Ontario. You need to consult your legal representative to determine the best procedure in your particular circumstances.