It’s often said that two things are certain, death and taxes. When a death occurs, an estate is opened, and the heirs must dispose of the person’s property. All insurance policies have a clause addressing what happens when an insured person dies.
The PM 02 10 Estates Endorsement is an endorsement designed to modify the standard death clause found in the Common Policy Provisions. Those standard provisions state that the legal representative is insured with respect to the property covered under the policy at the time of death, and that “insured” includes members of the household shown as the residence at the time of death and the person having property being granted temporary custody of the property until a legal representative has been appointed.
In Common Policy Provisions Form PM 00 01, Paragraph E.13. Death is deleted and replaced by the following:
13. Death
If an "insured" dies, we insure the property:
1. Described in the Schedule that was owned by the decedent at the time of death; or
2. Acquired by the Estate after the time of death;
but only while title of such property is vested or remains in the Estate or until this policy expires, whichever occurs first.
All other provisions of this policy apply.
Analysis
When the Estates endorsement is added to an inland marine policy, the death clause is changed. The property listed in the schedule that was owned by the deceased at the time of loss or the property acquired by the Estate after the time of death is covered, but only while the title of the property is vested or stays within the Estate, or until the policy expires. It does not grant coverage to those living in the premises at the time of death of the insured, nor does it provide coverage to anyone with custody of the property. The only property that is covered is that owned by the deceased at the time of death or acquired by the estate after the time of death.
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Christine G. Barlow, CPCU
Christine G. Barlow, CPCU, is Executive Editor of FC&S Expert Coverage Interpretation, a division of National Underwriter Company and ALM. Christine has over thirty years’ experience in the insurance industry, beginning as a claims adjuster then working as an underwriter and underwriting supervisor handling personal lines. Christine regularly presents and moderates webinars on a variety of topics and is an experienced presenter.