A Critical Step That May Save Your Real Estate
Author: Attorney Sadiyah Ahmad, Planning, Care & Benefits Attorney at Dillman & Owen Estate and Elder Law
Transferring the legal title of your real estate to your trust is a significant step to ensuring it is protected from probate proceedings. However, a frequently overlooked step that could save your real estate is updating your homeowner’s insurance to reflect the change in legal title.
If the trust is not listed on your policy, there may be gaps or disputes in coverage that may make your real estate vulnerable if something happens to it, which could result in a denial of coverage. Taking a few minutes to update this now may save your real estate later.
Here’s what you should do to ensure your real estate remains covered:
• Promptly contact your homeowner’s insurance company.
• Tell them your home is titled in the name of your trust.
• Ask them to add the trust as an insured party, either as a “named insured” or an “additional insured.”
• Verify that the insurance company adds the trust as an insured party and uses the trust’s full legal name.
• Request a written confirmation or an updated policy endorsement.
• Keep a copy of the updated insurance policy with your trust documents.
Adding your trust to your homeowner’s insurance policy ensures both you and your real estate are properly covered and confirms the insurance company recognizes the trust’s ownership interest.
Dillman & Owen Estate and Elder Law cannot complete this step for you – it is your responsibility to update your insurance coverage. If any questions arise as you take this critical step, the team at Dillman & Owen Estate and Elder Law is here to help.
This information is provided for general educational purposes only and should not be considered legal advice. Every situation isunique, and we recommend contacting your insurance agent to confirm trust coverage because they can advise on your specific policy.
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