The executor liability insurance is an insurance coverage for the executors or the administrators of the real estates against the possible and hidden mistakes while distributing a real estate among its legal heirs. You must know here that an executor may be subjected to the unlimited personal liability in the event of any mistake in the distribution process. As such, an executor liability insurance is must for all especially for those who are personal representatives or non-professional executors of a real estate. However, professional executors have professional indemnity coverage against such cases.
If you are a non-professional executor or a private representative of a real estate, you need not have to worry about the cost of purchasing an insurance since the same can be recovered under the head of estate administration. It is, however, important to mention that executor liability insurance is not a legal requirement for becoming an executor/administrator of a real estate. However, given the market size of this insurance, you will find many executor liability insurance provider even in your niche market. As such, finding the best partner for you may be a problem. We, therefore, present a blanket advice on the selection of such an insurance provider.
Things to know about an executor liability insurance provider:
· Tenure of the policy and freebees: Different insurance providers may have different tenures for such a coverage. No generalisation is possible here. However, there are some companies that provide tenure of 18 months and offer up to 50% discount on the base premium. This, in other words, means if you can choose the right insurance provider, you can save money. After all, money saved is money earned. In the process, you stand immensely benefitted.
· Coverage value: This is yet another important aspect of selecting an executor liability insurance provider. It is actually the coverage value that can potentially save you from the colossal losses in the events of major mistakes. You will be happy to know that there are some companies that offer a coverage value up to 1,000,000 pounds or more based on your application and further considerations at their end.
· Flexibility in coverage: Flexibility in the policy of an executor insurance plays a pivotal role safeguarding you further. For instance, you became an executor/administrator of a real estate a few months back but didn’t take the insurance. In such a case, there are companies that provide insurance to you if you apply for the same within six months from the date of becoming an executor/administrator. Again, you may require to add some more executors to your executor insurance policy. You will be glad to know that that too can be arranged by some companies up to three additional executors thus enhancing the total number of executors up to four.
You may however, need an extension on your 18 months’ coverage based on the understanding that certain provisions of the Limitation Act 1980 permit claim up to 12 years from the death of the real estate owner. In such a case, you can extend policy further based on your insurance provider’s policy term.