Right Of Survivorship

What Does Right Of Survivorship Mean?

The right of survivorship refers to a person’s right to fully own a property after a co-owner passes away. This often occurs in “joint tenancy” arrangements, where two individuals hold ownership stakes in the property.

In such cases, the full responsibility for the property, including insurance obligations, is typically transferred to the surviving owner along with the ownership of the property. For the surviving co-owner, the homeowners policy usually needs to be updated to reflect sole ownership, which is a good moment to compare options from the best homeowners insurance companies in case a different insurer fits the new situation better.

Insuranceopedia Explains Right Of Survivorship

If joint tenancy is not in place, there may be no right of survivorship, even if one owner of a property dies. In such cases, the deceased owner’s interest in the property may pass to their next of kin, rather than the surviving co-owner.

The responsibility for insuring the property after the original owner dies typically depends on who gains control of the decedent’s interest in the property. This is usually determined by the legal arrangements made in the deceased owner’s will or estate plan. Because right of survivorship can override what a will directs for a jointly held property, it’s worth reviewing the rest of an estate alongside it, including any life insurance beneficiary designations, so the legal documents and ownership arrangements line up.