Can children claim for deceased parents’ homeowners insurance after fire?

Homeowners insurance policies typically insure the legal owner of the house and anyone who has an insurable interest in the house. The most common example of a party with an insurable interest is a mortgage lender. If you have a mortgage on your home, your mortgage lender will likely require you to maintain homeowners insurance and make them a “loss payee” on the policy. This means the proceeds from an insurance settlement for damage or destruction to your house will be paid to you and your lender.

Children of a deceased owner are in a different situation. If the house were legally owned by the parents (without a lender), the insurance proceeds would likely be paid to the estate of the deceased, which is now responsible for managing the affairs of the deceased. If the children are the legal heirs of the deceased, the insurance proceeds would likely come to them at some point after the estate’s assets are properly distributed. However, it is unlikely that a child can directly claim for the insurance proceeds and bypass the parents’ estate.

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