(1) Except as provided in subsection (3) of this section, the spouse and dependent children of a decedent occupying the principal dwelling of the decedent at the time of the decedents death, or any of them, may continue to occupy the dwelling until: (a) One year after the death of the decedent; or (b) If the decedents interest in the dwelling is a leasehold or otherwise less than a fee interest, until one year after the death of the decedent or the earlier termination of the interest. (2) During an occupancy under subsection (1) of this section: (a) The occupants may not commit or permit waste to the dwelling, or cause or permit construction liens or other liens to attach to the dwelling. (b) The occupants shall pay the cost to keep the dwelling insured, to the extent of the fair market value of the improvements, against fire and other hazards within the extended coverage provided by fire insurance policies, with loss payable to the estate. (c) The occupants shall pay taxes and improvement liens on the dwelling as payment of the liens becomes due. (d) The dwelling is exempt from execution to the extent that the dwelling was exempt when the decedent was living. (e) The dwelling is subject to the rights of persons having a security interest in the dwelling. (3) For good cause shown, the court may waive or alter the provisions of subsection (1) of this section.
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