Why Should I Add My Trust As An "Additional Insured" With My Homeowner Insurance Carrier?

When you title your home in the name of your trust, the trust technically becomes the owner of the property. While most insurance companies are accustomed to individuals owning homes, a trust-owned home can introduce a layer of ambiguity. If your insurance policy lists you as the insured party but does not mention the trust, the insurance company might argue that the trust, as the owner, is not covered under the policy.

This oversight can have severe consequences. When a trust owns real estate and there is an accident or injury on the property, if the trust is not a named insured on the property insurance policy, the insurance company does not have to pay the claim. Furthermore, if the trust is not listed as the named insured, the trust may not be protected for damage to the insured premises, personal property, and liability exposure. These gaps in coverage can leave the trust—and ultimately you or your beneficiaries—vulnerable to significant financial risks.

Click here to read more about why listing your trust on your homeowners insurance matters.