My mother has a life estate in Florida. Can she buy tenant's insurance and let the remainderman worry about homeowner's insurance?
My mother has a life estate in Florida. Can she buy tenant's insurance and let the remainderman worry about homeowner's insurance?
The life tenant is normally responsible to insure the property and, if she fails to do so, can be held liable for any "waste" that results from damage or destruction of the property.
Depends on the wording of the life estate and state law. Mr. K is correct. Let's assume that the house burns down and there is no insurance, where is she going to live? If she purchases the insurance the co. will pay her. Then the remaindermen may be out in the cold if she doesn't use it to rebuild. The best and fairest way I have heard of handling it is for each of them to pay half the cost and both be named on the insurance policy.