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Committee narrows transfer-on-death deed insurance protection to residential property
Summary
Lawmakers amended and approved a bill to limit insurance protections tied to transfer-on-death deeds so they apply only to real property (homes), exclude commercial and personal property and provide 60 days of insurance continuity after transfer; the measure passed the committee 11-0.
Representative Lehman explained House Bill 12-13 and two technical amendments that narrowed the earlier statutory language so the insurance-continuation rule applies only to real property (residential homes), excludes commercial properties and removes reference to certain additional code steps. Lehman said the prior law's broader language unintentionally extended to vehicles, bonds and other personal property; the amendment restores the original intent to focus on houses and to limit liability coverage transfer.
John Zarich testified in support and explained the practical effect: "This transfer happens immediately, upon the death," he said, adding that the 60-day coverage window gives insurers and inheritors time to find and notify the new owner and arrange replacement coverage. Annette Brogdon of the Indiana State Bar Association's probate and real property section testified the association supports the amended bill.
Committee members asked whether the 60-day clock starts at the time of death or upon notice; witnesses said the transfer is immediate and the 60 days provides a temporary safeguard while arrangements are made. The committee adopted the two technical amendments by consent and voted to pass the bill as amended. The chair announced the measure passed 11-0.
The bill advances to the next stage. Sponsors said the change restores the measure's intent to protect inadvertent inheritors of a residence without expanding insurer obligations to commercial property or personal effects.
