In South Africa, when a person passes away, their estate must be administered and distributed according to their will or the laws of intestate succession. A key figure in this process is the executor, who is appointed by the Master of the High Court to manage the deceased’s estate. One of the executor’s primary responsibilities is ensuring that estate assets, particularly immovable property, are adequately insured. This article explores the responsibility of an executor to insure property upon appointment and identifies who bears this responsibility before the appointment is formalized.

The Executor’s Duty to Insure Property Upon Appointment

Once the Master of the High Court issues Letters of Executorship, the executor gains full legal authority to manage the deceased estate. In terms of the Administration of Estates Act, 1965 (Act 66 of 1965), the executor has a fiduciary duty to safeguard the estate’s assets, which includes ensuring that any immovable property is properly insured against potential loss or damage.

If an estate includes a house, apartment, or other real estate, it is the executor’s duty to:

• Verify existing insurance policies and ensure they remain valid.
• Take out or renew an insurance policy if none is in place.
• Ensure that insurance premiums are paid from the estate’s funds.
• Protect the property from any foreseeable risks that could diminish its value.

Failing to properly insure estate property could result in personal liability for the executor if damage occurs due to negligence.

But the question arises as to who is Responsible for Insurance Before the Executor’s Appointment?

Before the Master issues Letters of Executorship, there is a period where the estate is in limbo. During this time, the responsibility for insuring the deceased’s property typically falls to the following parties:

1. The Heirs or Beneficiaries in Occupation – If the deceased’s property is occupied by heirs or beneficiaries, they may have a vested interest in maintaining insurance coverage to protect their future inheritance.
2. The Deceased’s Existing Insurance Policy – Many deceased individuals have homeowners’ insurance in place before their death. These policies often remain valid until the next premium payment is due. It is crucial for the family or the nominated executor to verify the status of these policies and ensure that premiums continue to be paid until the estate is formally administered.
3. The Nominated Executor or Family Members – While the nominated executor does not yet have legal authority over the estate, they may act prudently by communicating with the insurance provider to ensure that coverage remains intact. Family members can also step in to pay the premiums and later claim reimbursement from the estate.
4. The Curator or Interim Caretaker – In cases where a significant estate is involved, the Master may appoint a curator or interim caretaker who can take necessary actions to protect the assets, including arranging insurance coverage.

Practical Steps to Ensure Continuous Insurance Coverage

To prevent lapses in insurance coverage and protect estate assets, the following steps should be taken:

• Check existing policies: Determine whether the deceased had a valid insurance policy at the time of death.
• Notify the insurer: Inform the insurance company of the policyholder’s death and inquire about maintaining coverage.
• Continue paying premiums: Ensure that premiums are paid to avoid policy cancellation.
• Secure interim arrangements: If necessary, take out a short-term insurance policy until the executor is appointed.

The responsibility for insuring a deceased person’s property shifts as the estate administration process unfolds. Before the executor’s appointment, heirs, family members, and even the deceased’s existing insurance policies play a role in maintaining coverage. Once the executor is formally appointed by the Master of the High Court, they have a legal obligation to ensure all estate assets, including immovable property, are adequately insured. Proper insurance management is essential to protecting the estate’s value and preventing financial loss for beneficiaries.