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#2271503 - 06/10/22 02:07 PM death of named insured
parr04 Offline
Gold Star
Joined: Aug 2004
Posts: 391
oklahoma
We have a loan on a primary residence to one borrower who has recently died. No other family members are left that can found.
The bank is starting to initiate foreclosure proceedings on the house. Since the deceased individual is the named insured listed on the policy is the policy still valid? No one seems to want to step forward and set up an estate account so if the house was damaged by a flood how would the bank get paid?

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Flood Compliance
#2271507 - 06/10/22 02:53 PM Re: death of named insured parr04
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 80,325
Galveston, TX
As long as the policy is still in force, you should be fine:

“Policyholder” refers specifically to the individual or business named in the policy itself, whereas “insured” refers to the policyholder as well as anyone who submits payment on behalf of the policyholder and who has the right to a claim payment under the policy (for example, the mortgagee).
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2271543 - 06/10/22 08:23 PM Re: death of named insured rlcarey
parr04 Offline
Gold Star
Joined: Aug 2004
Posts: 391
oklahoma
Thanks Randy. That makes me feel better.

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