Did You Know? Trust-Owned Homes May Face Insurance Issues

[Jeet Sangha]

I came across some critical information today that I think is important to share with you:

In the aftermath of the LA fires, it has become evident that some homeowners’ insurance claims have been denied or disputed because the property title was held in a trust, but the insurance policy was under the individual homeowner’s name.

This serves as a valuable reminder to review your insurance policies and ensure that the ownership structure on your property title matches the named insured on their policy. If a home is titled in a trust (or an LLC), the trust or LLC should be added as an additional insured to avoid potential disputes during a claim.

To confirm, we reached out to an insurance carrier, who clarified:

“A carrier can potentially deny a claim if the home is titled in a trust or LLC but the insurance policy is under the individual homeowner's name. The ownership structure as indicated on the title must match the named insured on the policy to ensure proper coverage. To avoid a dispute, it’s crucial to add the trust or LLC as an additional insured on the policy.”

This is a simple but crucial step to help protect your home.

Please share this post with your family and friends to keep them informed.