Life’s storms—whether personal challenges like health issues, divorce, or the sudden loss of a loved one, or even natural disasters like hurricanes, floods, and fires—can strike without warning. These events can upend lives and damage everything from emotional well-being to physical property.
Lately, social media has circulated claims that insurance companies refuse to pay out total loss claims when a home is owned by a trust. While insurance providers are examining claims more closely than in the past, owning your home in a trust doesn’t automatically invalidate your coverage.
Understanding the Trust-Insurance Connection
When you transfer property into a trust, you need to take a few important steps to keep your homeowner’s policy fully effective. One of the most critical steps is to list your trust as an “additional insured” on the policy. Doing this makes sure the trust—and the people it’s designed to protect—are clearly recognized by your insurance company. If you skip this step, you risk coverage disputes when disaster strikes. Always double-check that your policy reflects trust ownership to avoid surprises down the road.
Keeping Your Trust Up to Date
Many clients create a trust and assume their work is done. In reality, keeping a trust effective requires ongoing attention. Every time you buy a new asset or switch insurance providers, review your documents to ensure they correctly list the trust. Think of it like routine home maintenance—checking your roof, testing smoke alarms, or servicing the furnace. Small actions now prevent bigger issues later, and they keep your estate plan ready when you need it most.
We’re Here to Help
If you have questions about aligning your trust with your insurance coverage—or if you want peace of mind knowing your estate plan can weather life’s storms—reach out to our team. We’re here to help you protect what matters most, no matter what challenges come your way. Call us at 724 841 1393.
