My mom and I live in my grandma's home. My grandma passed away in October and the house is in her name. The house insurance is in her name also. My mom wanted to get it in her name but was told she can't cause she has no insurable interest in the house. My mom has been paying the monthly insurance premiums. We want to know what would happen if something were to happen to the house and/or the stuff inside it. Would they issue her a check in her name? Issue my mom a check? Or would they not pay at all? But how can they not pay at all when my mom has been making the payments? If they do issue a check in my grandma's name can it just be deposited into the bank account that my grandma's name is still on along with my mom? My mom, nor I can have the house put in our name BTW. TY all.
Zarnev2013-03-30T09:11:46Z
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Any check would be issued in grandma's name, which would become part of the estate. The executor would than have control over the money. It cannot be deposited in the bank because it would need grandma's signature and possibly the signature of the mortgage company if still financed.
You need to speak with an estate lawyer and get the deed transferred over to your mom or else if something happens you would be out on the street without a home.
The house isn't yours, and the stuff inside presumably isn't yours, either. Mom doesn't have insurance in her name.
If the house burned down, the payment would be made "to the estate of grandma". No one would be able to cash the check, until grandma's estate is settled.
Right now, you and mom are "squatters" in grandma's abandoned house. Mom has to go to probate court to get grandma's estate settled - and if grandma has no unpaid debts, and mom is the only heir, the court can transfer the house to mom.
Meanwhile, the homeowners policy is a problem as the house currently is NOT occupied by the owner - grandma.
They can "not pay" because your mother has not been paying the amount that is the monthly price for a home where no one living in the home owns the home. She has only been paying the amount that is the monthly price for a home where someone living in the home also owns the home. Because no one living in the home (or anywhere else) owns the home, the amount that she has been paying monthly is not enough to keep the home insured.
Option 1 is to get the home put into the name of a person who is alive and is living in the home, and then have that person get insurance, at the price for a home where the owner is living in the home.
Option 2 is to get the home put into the name of a person who is alive and is not living in the home, and then have that person get insurance, at the much higher price for a home where the owner is not living in the home.
Option 3 is to go to probate court, get appointed as the "executor" of the "estate", and have the "estate" get insurance, again at the much higher price for a home where the owner is not living in the home.