Homeowners Insurance
This week I thought I might take a moment to talk with you about a couple items related to home insurance and the challenges facing homeowners.
As many people are finding out this week, insurance companies have been mass canceling policies. There are other solutions, but it can be confusing. If you need help navigating this situation, please do let us know.
A recent Northern California Bay Area news outlet shared the following on this challenging time.
https://bit.ly/3Q6u8cp
On the topic of home insurance, there is something else to keep in mind. If your house is titled in the name of your trust, consider informing the insurance company that your trust should be an additional insurer on your policy.
Small details matter. And given the uncertain world of home insurance after recent catastrophic events, it's important to be especially careful.
A recent article highlighted this issue and is an important to-do for homeowners.
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"If you’ve transferred your home’s title or deed into your trust’s name, it’s crucial to inform your insurance agent to maintain proper coverage. Some insurance companies require notification of such changes to recognize the trust as an insured entity under your policy. Without this, your trust might not be covered, leading to potential coverage issues. Typically, if the named insured is also the trustee, there shouldn’t be a problem, but it’s always better to be safe than sorry.
The Importance of Updating Your Policy
When your home is owned by a trust, your homeowners insurance policy should reflect this ownership to ensure comprehensive protection. This often involves adding the trust as an “additional insured” on your policy. By doing so, both you and the trust are covered for property damage and liability claims. Failing to update your policy can result in significant coverage gaps, leaving the trust exposed to potential risks.
To ensure your home and trust are adequately protected, consider the following steps:
- Review Your Policy: Examine your current homeowners insurance policy to understand existing coverage.
- Consult Your Insurance Agent: Discuss the change in property ownership to a trust and determine the necessary policy adjustments.
- Add the Trust as an Additional Insured: Ensure the trust is listed appropriately on your policy to cover its insurable interests.
- Confirm Coverage Details: Verify that both the structure and personal property are covered under the updated policy."
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Source: https://elderlawcalifornia.com/homeowners-insurance-and-your-trust/
Note: The information presented above is for educational purposes only. Strategies vary based on individual circumstances.
