Managing a Deceased Person's Home During Probate: Insurance, Mortgage, Maintenance, and Utilities

How-To Guides 17 min read

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If you are the executor of an estate that includes a home, you are now responsible for that property. Not in the way a homeowner is responsible – you do not own it – but in the way a fiduciary is responsible: you must protect its value, maintain its condition, and manage its costs until it is transferred to a beneficiary or sold. That responsibility can last anywhere from a few months to over a year, and it comes with real financial and legal consequences if something goes wrong. A burst pipe in a vacant house, a lapsed insurance policy, or a missed mortgage payment can cost the estate thousands of dollars and create personal liability for you as executor.

Afterpath provides personalized property management guidance for executors handling real estate during North Carolina probate. Our Pathfinder AI guide answers questions about insurance, mortgage obligations, and maintenance duties. Our task management system tracks every property-related deadline, and our NC Compliance Engine ensures you meet your fiduciary obligations under North Carolina law. Protecting the estate’s most valuable asset should not require guesswork.

Your Fiduciary Duty to Protect Estate Property

As executor in North Carolina, you have a legal fiduciary duty to preserve and protect estate assets. For real property, that means you must take reasonable steps to maintain the home’s condition and value during probate. This is not optional advice – it is a legal obligation under NC G.S. 28A-13-3.

What “reasonable steps” means in practice:

Keeping the home insured against loss
Ensuring the mortgage stays current (from estate funds, not your own)
Maintaining the property in reasonable condition (preventing deterioration)
Securing the home against unauthorized entry
Keeping essential utilities running

If you fail to take these steps and the property loses value as a result, beneficiaries can hold you personally liable. If a pipe bursts because you turned off the heat in January, the resulting damage comes out of your pocket, not the estate’s.

This is not meant to alarm you. Managing a home during probate is manageable work. But it is important to understand the stakes so you take it seriously from day one.

Homeowner’s Insurance: The Most Critical Step

Insurance is the single most important property-related task for an executor. An uninsured home is an unprotected asset, and the risks are enormous: fire, storm damage, water damage, theft, and liability if someone is injured on the property.

The Vacancy Problem

Here is what most executors do not know: standard homeowner’s insurance policies often exclude or limit coverage for homes that are unoccupied for more than 30 consecutive days. The specific exclusion period varies by insurer, but 30 to 60 days is typical.

If your loved one lived alone and the home is now empty, your existing policy may stop covering the home within a month. You could be paying premiums on a policy that would deny your claim.

What to Do Immediately

Within the first week after the death, call the homeowner’s insurance company. Report the death of the policyholder and explain that you are the executor of the estate. Ask the following questions:

Does the policy contain a vacancy or unoccupancy clause? If so, how long can the home be unoccupied before coverage is affected?
Can the policy be transferred to the estate’s name?
Does the insurer offer an endorsement or rider for vacant or estate-held properties?
If not, do they offer a separate vacant home policy?
What is the current policy’s expiration date?

Your Options

Option 1: Transfer the existing policy to the estate. Many insurers will allow you to change the named insured from the deceased to “Estate of [Name].” This keeps the policy active under the estate’s name. The coverage terms may remain the same, especially if someone is regularly checking on the property.

Option 2: Add a vacancy endorsement. Some insurers offer an endorsement (add-on) to the existing policy that extends coverage for vacant properties. This typically costs more – often 25-50% higher premiums – but maintains the existing coverage relationship.

Option 3: Purchase a vacant home insurance policy. If the existing insurer cannot accommodate the situation, you may need a separate vacant home policy from a specialty insurer. These policies are designed for properties that are unoccupied and provide coverage for the specific risks vacant homes face: vandalism, frozen pipes, undetected water damage, and liability.

Option 4: Keep someone living in the home. If a family member or trusted person can reside in the home during probate, the vacancy issue goes away. The policy remains in force under normal terms. Just make sure the insurer knows the occupant’s name and relationship.

Whichever option you choose, do not let the home go uninsured for even a day. A single uninsured loss can wipe out a significant portion of the estate’s value.

Afterpath’s task management system flags the insurance notification as a high-priority task within the first week after death. You will receive specific guidance on what to ask the insurance company and what documentation to bring, based on the deceased’s policy type and living situation.

Mortgage Payments: Who Pays and What Happens If You Stop

If the deceased had a mortgage on the home, those payments need to continue during probate. A missed mortgage payment can trigger late fees, damage the estate’s credit standing, and eventually lead to foreclosure proceedings – all of which reduce the value of the estate.

Who Pays the Mortgage?

The estate pays the mortgage, not you personally. Mortgage payments should come from the estate bank account. If the estate does not yet have a bank account (because you are still waiting for Letters Testamentary or the EIN), the mortgage still needs to be paid. Here are your options:

Pay from a joint bank account if the deceased had one with a surviving spouse or family member and the funds clearly belong to the estate
Pay from your personal funds and reimburse yourself from the estate once the estate account is open. Keep meticulous records of the amount, date, and payment method
Contact the lender and explain the situation. Most lenders will grant a brief grace period when they know the borrower has died and the estate is being opened

Contact the Mortgage Lender

Call the mortgage servicer as soon as possible after the death. Provide:

The deceased’s name and loan number
A certified death certificate
Your name and contact information as executor
Your Letters Testamentary or Letters of Administration (when available)

Ask the lender:

Is there a grace period for payments during estate administration?
Can the estate assume the loan, or does the full balance become due?
Are there any life insurance or mortgage protection policies tied to the loan?
What is the current payoff balance?
How should payments be directed during probate (same address, same method)?

The Garn-St. Germain Act

Federal law – the Garn-St. Germain Depository Institutions Act of 1982 – generally prohibits lenders from enforcing a due-on-sale clause when property is transferred due to the borrower’s death. This means the lender cannot demand immediate full repayment just because the borrower died. The estate (or the beneficiary who inherits the home) can continue making the regular mortgage payments.

This is an important protection, but it only applies if payments continue. If the estate stops paying, the lender can still foreclose.

What If the Estate Cannot Afford the Mortgage?

If the estate lacks liquid funds to cover mortgage payments, you have several options:

Sell the home. If the will allows it or the beneficiaries agree, selling the property eliminates the ongoing mortgage obligation and may generate proceeds for the estate
Rent the home. If sale is not immediately possible, renting generates income to cover the mortgage. Check the will for any restrictions on renting estate property
Request a loan modification. Some lenders will modify the loan terms during estate administration
Use estate assets to pay. If the estate has investments or other liquid assets, those can be used for mortgage payments

Do not ignore the mortgage. A foreclosure during probate is one of the worst outcomes for an estate – it eliminates the property as an asset and can create deficiency liability.

Ongoing Maintenance: Preventing Deterioration

A house does not pause its maintenance needs because the owner has died. Gutters still clog, grass still grows, roofs still leak, and pipes still freeze. As executor, maintaining the property is part of your fiduciary duty.

Regular Maintenance Checklist

Monthly:

Walk through the property (or have someone do so) to check for issues
Check for signs of water intrusion (stains on ceilings, dampness in basements)
Run water briefly in all sinks, showers, and tubs to keep traps from drying out (dry P-traps allow sewer gas into the home)
Flush toilets
Check that HVAC systems are running properly

Seasonal:

Spring: Check gutters and downspouts, inspect the roof, test sump pumps, check for pest activity
Summer: Maintain lawn and landscaping, trim trees away from the house, check air conditioning
Fall: Clean gutters, check heating system, seal any cracks or openings where animals might enter
Winter: Winterize properly (see below), keep walkways clear of ice (liability issue)

Winterization (Critical in NC Mountain and Piedmont Areas)

If the home will be vacant through winter, especially in western or central North Carolina where freezing temperatures are common, winterization is essential:

Keep the heat on. Set the thermostat to at least 55 degrees Fahrenheit. This is the most important step to prevent frozen pipes. The cost of heating is far less than the cost of burst pipe damage.
Insulate exposed pipes in crawl spaces, attics, and garages
Open cabinet doors under sinks on exterior walls to allow warm air to circulate around pipes
Drain outdoor faucets and disconnect garden hoses
If the home will be truly unoccupied for an extended period, consider having a plumber drain the entire water system and add antifreeze to traps. This is a last resort and only makes sense if no one will be checking the home regularly

Lawn Care and Exterior Maintenance

An unmaintained lawn signals a vacant home and can attract unwanted attention. It can also violate local ordinances and HOA requirements (see below). Hire a lawn service or ask a family member to maintain the yard on a regular schedule.

Who Pays for Maintenance?

All maintenance costs are legitimate estate expenses. Pay them from the estate bank account and keep receipts for the estate accounting. If the estate account is not yet open, pay personally and reimburse yourself once it is – again, keep detailed records.

Afterpath’s Pathfinder AI guide can help you determine which maintenance tasks are necessary versus optional for your specific property, based on the home’s location, condition, and the time of year. If you are an out-of-state executor managing a property remotely, Pathfinder can suggest local service providers and help you build a maintenance schedule.

Utilities: What to Keep On, What to Transfer, When to Shut Off

Utilities are a balancing act. You need to keep essential services running to protect the property, but you do not want to pay for services the estate does not need.

Keep These On

Electricity: Always. Powers security systems, sump pumps, refrigerators (which may need to stay on until contents are addressed), and heating/cooling systems
Water: Keep active if anyone is maintaining the home or if you are winterizing with heat. Only shut off if you are doing a full water system drain
Gas/Heating Oil: Keep active through cold months. Even in NC, the Piedmont and Mountain regions see freezing temperatures from November through March
Sewer/Septic: Stays active as long as water is on

Transfer to the Estate

Contact each utility provider to transfer the account from the deceased’s name to “Estate of [Name].” Most NC utility companies will do this with a death certificate and your Letters Testamentary. This protects you from personal liability for the utility bills and ensures the estate is properly charged.

Consider Canceling

Cable/Satellite TV: No reason to keep this active on a vacant property
Internet: Cancel unless you need it for a security camera system
Landline phone: Cancel unless it is tied to a security system
Premium services: Any add-on services or premium tiers on utilities can be downgraded

When to Shut Everything Off

Shut off all utilities only when:

The home has been sold and the closing is complete
The home has been transferred to a beneficiary who has established their own accounts
The home has been thoroughly winterized with a full water system drain (in which case you may shut off water and reduce heating)

Never shut off utilities while the property is being shown for sale. Buyers expect a fully functional home during showings.

Security: Preventing Break-Ins and Protecting the Property

Vacant homes are targets for theft, vandalism, and squatting. The property may contain valuable personal items, appliances, and fixtures that belong to the estate.

Physical Security

Change the locks. If multiple people had keys (caregivers, neighbors, housekeepers, friends), rekey the locks. You can have this done by a locksmith for $100-$200, or you can replace the locksets yourself
Install or maintain a security system. If the home already has one, keep it active. Transfer the account to the estate. If there is no security system, consider a basic self-monitored system with door/window sensors and a camera – many are available for under $200 and do not require professional installation
Use light timers. Put lights on timers so the home appears occupied at night. Smart plugs with timers cost $10-$15 each
Keep blinds and curtains in their normal positions. All closed or all open looks vacant

Mail and Package Management

Forward the mail. File a USPS change of address to redirect mail to the executor’s address. This also prevents mail from piling up in the mailbox, which signals vacancy
Stop deliveries. Cancel any recurring deliveries (newspapers, packages, subscriptions) that would accumulate on the porch
Ask a neighbor. If the home is in a neighborhood, ask a trusted neighbor to keep an eye on the property and contact you if they notice anything unusual. Most neighbors are happy to help

HOA Requirements

If the home is in a homeowners association, contact the HOA to notify them of the death and provide your contact information as executor. HOAs have specific requirements for:

Lawn and landscaping maintenance
Exterior appearance and upkeep
Parking and vehicle storage
Trash and recycling schedules

HOA violations during probate can result in fines that become claims against the estate. Stay ahead of them by understanding the requirements and maintaining compliance.

Afterpath’s NC Compliance Engine tracks HOA-related obligations when you indicate the property is in an HOA. The system adds maintenance and compliance tasks to your checklist so nothing is overlooked.

Special Situations

The Home Has a Reverse Mortgage

If the deceased had a reverse mortgage, the loan becomes due when the borrower dies. Heirs typically have six months to repay the loan or sell the home, with the possibility of two 90-day extensions. Contact the reverse mortgage servicer immediately to understand the timeline and your options.

The Home Is Rented to Tenants

If the deceased was a landlord and tenants currently live in the property, their lease rights continue after the landlord’s death. The estate steps into the landlord’s role. You must honor existing leases, maintain the property, and handle security deposits according to NC landlord-tenant law. Rent payments should be directed to the estate account.

The Home Is in Another State

If the deceased owned the NC home where they lived plus property in another state, the out-of-state property may require ancillary probate in that state. See our guide on ancillary probate and multi-state estates in NC for details.

The Home Needs Major Repairs

If the home has significant damage (roof failure, foundation issues, mold) that threatens its value, you may need to authorize repairs from estate funds. For major expenditures, it is wise to get multiple estimates and, if the estate has multiple beneficiaries, to communicate with them before spending. The executor has authority to make reasonable repairs, but beneficiaries may question large expenses if they were not consulted.

Record Keeping

Document everything related to the property during probate. Keep records of:

Insurance policies and premiums paid
Mortgage statements and payments made
Utility bills and payments
Maintenance and repair invoices
Lawn care and landscaping costs
Security system costs
Any rental income received
Property tax payments
HOA dues and assessments

These records are part of the estate accounting you will file with the court. They demonstrate you fulfilled your fiduciary duty and justify the expenses charged to the estate.

Afterpath’s Document Vault keeps all property-related documents organized and accessible. Upload insurance policies, mortgage statements, repair invoices, and utility bills as you receive them. When it comes time to prepare the estate accounting, everything is already in one place, sorted and ready.

Frequently Asked Questions

How long do I need to maintain the home during probate?

Until the home is either transferred to a beneficiary or sold. In North Carolina, probate typically takes 8 to 16 months, though some estates close faster. During that entire period, the executor is responsible for the property. If the home is the estate’s primary asset and needs to be sold, the maintenance period extends until the sale closes.

Can I be personally liable if something happens to the home?

Yes, if the damage resulted from your failure to take reasonable precautions. If you let the insurance lapse and a fire destroys the home, you could be held personally liable for the lost value. If you failed to winterize and pipes burst, you could be liable for the damage. The standard is “reasonable care” – you do not need to renovate the home, but you must protect it from foreseeable harm.

Can I sell the home during probate?

Yes, with proper authority. In NC, the executor generally has the authority to sell real property if the will grants that power or if the court approves the sale. If the will is silent on real property sales, you may need a court order. See our guide on whether an executor can sell property without beneficiary consent for a detailed breakdown.

Can someone live in the home during probate?

Yes. If a beneficiary or family member wants to live in the home during probate, that can actually simplify maintenance and insurance issues. See our guide on living in a house during probate in NC for the details and potential complications.

Can Afterpath help me manage the property during probate?

Yes. Afterpath’s task management system includes property-specific tasks: insurance transfer, mortgage notification, utility management, maintenance scheduling, and security measures. Each task is timed to the appropriate phase of estate administration. Pathfinder answers property-related questions specific to your situation – whether you should winterize, what insurance to get, how to handle an HOA violation. And if you need to sell the property, Afterpath’s Professional Marketplace can connect you with NC real estate agents and attorneys who specialize in estate sales.

Moving Forward

Managing a home during probate is real, ongoing work. It is not the hardest part of estate settlement emotionally, but it is the part that requires consistent attention over the longest period of time. A home that is well-maintained during probate preserves its value for the beneficiaries and protects you from personal liability as executor.

Start with insurance – that is the most urgent task. Then address the mortgage, set up maintenance, and secure the property. Once those systems are in place, the ongoing effort is manageable.

Dealing with estate settlement while grieving is one of life’s hardest challenges. You do not have to figure it out alone.

Afterpath was built for exactly this moment – to turn the overwhelming chaos of estate settlement into a clear path forward. Our AI guide Pathfinder is available 24/7 to answer your questions, our task system ensures nothing falls through the cracks, and our NC compliance engine makes sure you do everything right.

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