Placing your home in a trust is a smart estate planning move, helping to protect your assets and ensure a seamless transition for your heirs. But have you considered how this impacts your homeowners’ insurance?
Too often, property owners transfer their home into a trust without updating their insurance policy—only to face coverage issues when they need it most. If your trust isn’t properly listed on your policy, your insurer may deny claims, leaving you vulnerable to unexpected financial losses.
Ensure Your Trust Is a Named Insured
When you place your home in a trust, your insurance provider must be informed. Standard homeowners’ policies typically list an individual as the named insured, meaning your trust may not automatically be covered. If your trust isn’t properly added, your insurance company could reject a claim on the grounds that the listed policyholder no longer owns the home.
Some insurers extend coverage to trusts automatically, but many require policy modifications or endorsements. To avoid surprises, your trust should be explicitly listed as either a named insured or an additional insured on your policy. This ensures your property and liability protections remain intact.
How Coverage Gaps Can Cost You
If your trust is not properly listed and you file a claim, your insurer may argue that the policy does not apply—potentially leaving you and your trust responsible for repair costs, legal fees, and liability claims.
Even worse, if someone is injured on your property and liability coverage is not properly structured, trustees could face personal financial responsibility for lawsuits or settlements.
Because insurance carriers treat trusts differently, it’s crucial to review your policy carefully. Some companies provide automatic coverage, while others require specific endorsements. Don’t assume your home is protected—verify it.
How ILG Can Help
At Insurance Litigation Group (ILG), we’ve seen countless denied insurance claims due to these technical oversights. As experienced property claim attorneys, we help homeowners navigate insurance complexities, ensuring policies align with trust ownership and protecting policyholders from disputes. If your insurer refuses to honor a claim because of a trust-related issue, we’re ready to fight for your rights.
Take Action Now
Don’t wait until a denied claim costs you thousands. If your home is in a trust, review your homeowners’ policy today. Make sure your trust is properly listed as an insured entity to avoid coverage gaps.
Need guidance? Contact Insurance Litigation Group now—because when it comes to protecting your home, trust alone isn’t enough.
