Homeowners Insurance and Trusts: Avoiding Claims Denials

The Importance of Trust Naming on Home Insurance Policies

• ⚠️ Homeowners who have placed their property in a revocable trust may face issues with insurance claims if the trust is not listed on the policy.
• 💡 United Policyholders, an advocacy group, highlights that a failure to name the trust as an additional insured can lead to claims being denied.
• 🔑 This is because, legally, only the owner of the property has an insurable interest, and if the trust is the owner, it must be listed.

Steps to Ensure Proper Insurance Coverage

• 🛠️ If your property is in a trust, ensure the trust is listed as an additional insured on your homeowner's insurance policy to avoid potential claim denials.
• ⚖️ Without proper naming, you may need to hire an attorney to fight for your claim, as insurers might argue you lack the required insurable interest.
• ✅ Estate planning attorneys like Jerry Byer confirm that adding a trust to an insurance policy is typically an easy and cost-free process.

Expert Advice on Property and Trusts

• 🧠 Attorney Laura Davis emphasizes that the property owner is the sole entity with an insurable interest, making it crucial for the owner (which could be the trust) to be named on the policy.
• 📚 This advice is shared by renowned probate attorneys to help consumers avoid financial dangers and protect their assets.
• 📌 The information is part of a broader 'death checklist' series aimed at addressing important financial matters while living, including wills and trusts.