Why Your Trust Should Be Listed on Your Home Insurance Policy
If you have placed your home in a trust, it’s essential to ensure that your home insurance policy reflects this ownership by listing the trust as an 'additional insured'. Many homeowners establish trusts for estate planning purposes, helping to protect their assets and simplify inheritance. However, if the trust legally owns the home but is not included in the insurance policy, there’s a risk that a claim could be denied. This could leave the home, its occupants, and the trust’s beneficiaries financially exposed in the event of damage, liability claims, or other unforeseen incidents.
By adding your trust as an additional insured, you ensure that the property is properly covered, aligning the insurance policy with the home's legal ownership. This helps avoid complications when filing claims and ensures that any potential payouts are issued correctly. Without this designation, insurers may argue that the named policyholder no longer has an insurable interest in the property, creating unnecessary legal and financial hurdles. Taking this simple step offers peace of mind, protecting both your home and your estate planning goals.
Reach out to your estate planner or attorney today to learn more on this very important topic and ensure you're covered!
