How does fire insurance work?

As a result of a death in the family, I and 2 other siblings inherited a property. My sister assumed the responsibility to continue paying the fire insurance and be reimbursed for this expense at the time of sale. Does this type of insurance require a beneficiary? If there is a loss, will all 3 of us receive the payout or will my sister receive it based on her making the payments?

Asked on November 30, 2011 under Real Estate Law, Florida


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

In most situations where there is a policy of insurance (fire insurance in your case) in place and paid for by one of the owners of a property that is being insured, the policy of insurance is for the property set forth in the policy. Assuming that there is a claim concerning the insured property, the owners of record at the time of any event triggering the policy coming into place would be entitled to the insurance proceeds.

Typically, the insurance company would issue a check for any claim pay out jointly to all owners of the property. In your situation, you and your two other siblings would be named on the check in the event of a covered loss.

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