Does a homeowners insurance policy have to have the name of the current owners on the policy?

Yes, for the insurance company to issue the homeowners insurance policy, the home has to be named under the person living in the home, particularly, the one who is named as the owner of the house. The homeowners insurance policy specifically states that the named insured must also be living in the house and that the house must not remain unoccupied for a period of 30 consecutive days, otherwise, the policy can be considered invalid.

Additional Insureds

However, there is such a thing as an "additional insured". This includes people (aside from the named insured) and even organizations that are covered by the policy's property and liability coverage. This can include the spouse of the insured, as well as blood relatives that are currently living with the insured, as well as any other person who have the owner's permission to live in the house (except for people who will fall under the category of "renter").

Rationale behind the Requirement Regarding Current Owners

This is a legal requirement and an important one, from the point of view of the insurance company. The insurance company would like to ensure that the person named in the insurance policy has an insurance interest in the house, that is, the insured has an interest in keeping the house in good condition.

This means that you can't sell your house and expect your existing homeowners insurance policy to continue coverage of the house even as it has already transferred ownership. You are the owner of your own policy, while the new owner is the owner of his policy.

Death of the Insured

When the insured dies, it will be his estate that becomes the temporary insured. At the end of the policy period, the policy will no longer be renewed. So the insurance policy is not automatically transferred to the heir of the property. Generally, the heir will have to negotiate with the insurance company about the coverage.

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