Homeowners Insurance: Why Your Trust Must Be Listed on Your Policy

The Importance of Listing Trusts on Homeowners Policies

• ⚠️ Many homeowners risk denied insurance claims if their home is placed in a trust and the trust is not listed on the policy.
• 📌 This issue came to light after recent wildfires, where homeowners with trusts faced difficulties getting claims approved for damaged or destroyed homes.

Why Claims Can Be Denied

• 🏠 If a property is held in a revocable trust, the trust should be listed as an additional insured on the homeowner's policy.
• ⚖️ Without the trust listed, an insurer might deny a claim because the policyholder may not have the required insurable interest in the property.

Expert Advice on Trust and Insurance

• 💡 Prominent attorneys emphasize that adding a trust to an insurance policy is easy and cost-free.
• 🗣️ One attorney stated that the owner of the property is the only one with an insurable interest, and that owner might be your trust.

Actionable Steps for Homeowners

• ✅ Homeowners need to be aware of this requirement before they face a claim rejection.
• 📝 Ensure your homeowner's insurance policy accurately reflects ownership, especially if your home is held within a revocable trust.