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Is Your Home in a Trust?

Is Your Home in a Trust?

| March 11, 2020

Placing your home in a trust can be an effective estate planning tool. But there’s one critical step you need to consider now if your home is in a trust or if you decide to go this route, and it concerns your homeowners insurance policy.

When you purchase an insurance policy, you are insuring yourself against the financial ramifications of something happening to your property. So, homeowners insurance insures you against damage to your home.

When your home is owned by a revocable trust, the waters can get muddied a bit. You want to be sure that your insurance policy is still providing coverage, even though it is technically owned by the trust, not by you. If the trust is not named on your insurance policy, the carrier could deny your claim.

Here’s what you should consider doing: Call your insurance agent and tell them that you want to add the trust as an additional insured on your homeowners’ policy. Do not put the policy in the name of the trust only – this leaves you vulnerable. Your agent should be able to add the trust as an additional insured at no cost to you.

The same holds true for an umbrella policy. An umbrella policy provides additional coverage over and above your standard homeowners’ policy, so the same principle applies. Your revocable trust should be an additional insured on your umbrella policy.

Questions about insurance or estate planning? We’ll work with your attorney and other professionals or recommend someone that suits your needs. Just give us a call.


The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Irving Wealth Management and LPL Financial do not provide legal advice or services. Please consult your legal advisor regarding your specific situation.