Dec302025
Probate Q&A Series

Do we need landlord or homeowners insurance on a property that has been rented out for a long time, and what liability risks exist if someone gets hurt there? – North Carolina

Short Answer

In North Carolina, a long-term rental property is usually better insured with a landlord (dwelling) policy rather than a standard homeowners policy, because homeowners coverage often assumes the owner lives in the home. If someone gets hurt at the property, the owner (and, after death, potentially the estate or the heirs/devisees who take title) can face premises-liability claims tied to unsafe conditions and failure to repair or warn. Insurance does not change the legal duty to keep the property reasonably safe, but it can provide defense and coverage if a claim is made.

Understanding the Problem

In North Carolina estate administration, the question is whether real property that has been rented out for a long time should be covered by landlord insurance or homeowners insurance, and what liability exposure exists if a tenant, guest, or other visitor gets hurt at the property. The key decision point is who is treated as the “owner/landlord” responsible for the condition of the property after a death—such as the estate’s personal representative versus the heirs or devisees who take title—because that affects who may be named in a claim and who should make sure the right insurance stays in place.

Apply the Law

North Carolina generally treats injury claims at a rental property as premises-liability cases. The core idea is simple: the party who owns or controls the property can be responsible for injuries caused by unsafe conditions if that party knew (or should have known) about the hazard and did not fix it or warn about it. In an estate situation, title to North Carolina real estate often passes to heirs or devisees at death (subject to the estate administration), but a personal representative may need to take possession and control of the property to manage it for estate purposes. Separately, landlord-tenant rules and common safety requirements (like smoke detectors and carbon monoxide alarms) can matter because they often become the “baseline” facts in a negligence case.

Key Requirements

  • Correct “insured” and correct property use: The policy should match how the property is actually used (owner-occupied vs. tenant-occupied) and list the proper insured party (individual owner, estate, trust, or heirs/devisees).
  • Reasonable property safety and maintenance: Liability risk usually turns on whether the owner/landlord (or someone acting for them) failed to address a dangerous condition or failed to warn when a hazard was known or should have been discovered with reasonable care.
  • Clear management and repair responsibility: If a manager or broker is involved, the owner still needs a system to receive repair notices and authorize repairs, because ignored maintenance issues often drive injury claims.

What the Statutes Say

Analysis

Apply the Rule to the Facts: Here, multiple parcels remain titled in the decedent’s name (some jointly with a spouse and some solely), and an estate is open with the possibility of ancillary probate in another jurisdiction. For any North Carolina parcel that has been rented out long-term, the liability risk generally follows the party who owns or controls the premises after death—often the heirs/devisees who take title subject to administration, and sometimes the personal representative if the Clerk authorizes the personal representative to take possession and control for estate purposes. Because a long-term rental increases the chance of third-party injuries (tenants, guests, vendors), the insurance should match tenant-occupied use and be aligned with who is legally acting as landlord during administration.

Process & Timing

  1. Who acts: The personal representative (or the person handling the property for the family). Where: The insurer/agent and, if estate authority is needed, the Clerk of Superior Court (Estates) in the county where the North Carolina property sits. What: Confirm the current policy type (homeowners vs. landlord/dwelling), confirm the named insured, and confirm liability limits and whether the policy allows tenant occupancy. When: As soon as the family learns the property is tenant-occupied and the owner has died, because coverage disputes often turn on whether the insurer was told about a change in occupancy or ownership.
  2. Stabilize management and repairs: Identify who receives tenant repair requests and who can approve repairs. If a property manager is involved, confirm the written management arrangement and how safety items (smoke/CO alarms, habitability repairs) get handled and documented.
  3. Align ownership/authority with the policy: If the property is solely in the decedent’s name, the insurer may need an endorsement or rewrite to reflect the estate or successor owner. If the property is jointly titled with a spouse, confirm whether survivorship changes ownership immediately and whether the surviving owner needs to replace or reissue the policy in that owner’s name.

Exceptions & Pitfalls

  • Homeowners policy exclusions for rentals: Many homeowners policies restrict or exclude coverage when the property is not owner-occupied or is rented long-term. A long-rented property can create a denial risk if the policy was never converted to a landlord/dwelling form.
  • Wrong named insured after death: If the policy remains only in the decedent’s name, the insurer may raise questions about who is insured and who can make claims decisions. This is especially important when heirs/devisees are collecting rent after death or when a personal representative is managing the property.
  • Control without authority: In estate administration, leasing, ejecting tenants, or otherwise exercising landlord control may require the personal representative to first obtain possession, custody, and control through the Clerk (depending on how title passes and what the will says). Acting without clear authority can complicate both liability and insurance reporting.
  • Safety items become liability “hooks”: Missing or nonfunctional smoke detectors or carbon monoxide alarms, ignored repair notices, and poor documentation can become central facts in an injury case. Even when a manager is involved, the owner/landlord typically remains the primary target in a lawsuit.
  • Tenant-caused conditions are not always a complete defense: North Carolina law can limit a tenant’s responsibility for accidental damage in certain situations, and an injured person may still pursue the owner/landlord if the hazard relates to maintenance or conditions the owner should have addressed.

Conclusion

In North Carolina, a property that has been rented out long-term is typically better matched to landlord (dwelling) insurance than a standard homeowners policy, and the main liability risk is a premises-liability claim if someone is hurt due to an unsafe condition that the owner/landlord knew or should have known about. In an estate, the risk often follows whoever owns or controls the property after death (heirs/devisees and sometimes the personal representative). The most important next step is to confirm the current policy’s occupancy terms and update the named insured with the insurer promptly.

Talk to a Probate Attorney

If a family is handling rental real estate after a death and needs to sort out who has authority to manage the property, collect rent, and reduce liability exposure during administration, our firm has experienced attorneys who can help explain options and timelines under North Carolina probate rules. Call us today at (919) 341-7055.

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.

Category: Probate Q&A Series

Author: jpierce

Attorney Jared Pierce is the founder of Pierce Law Group in Raleigh, North Carolina, a firm he established with a dedicated focus on probate administration and estate planning across North Carolina. Born and raised in the Republic of South Africa, Jared moved to Durham with his family in 2001, bringing with him a rich cultural background and a distinctive accent that often serves as a conversation starter.