Homes in a Trust: How It Affects Your Insurance

Putting your home in a trust is a smart estate planning move. It helps avoid probate and makes passing down your property smoother. But what does it mean for your home insurance?

When you transfer your home into a trust, the trust technically becomes the owner. That means your homeowner’s insurance needs to reflect that change. If your policy still lists you as the owner, your coverage might not be valid in case of a claim. Yikes!

To fix this, simply notify your insurance company and update your policy to include the trust as an additional insured or named insured. This way, both you and your trust are protected.

Another perk? If the trust helps manage your property for future generations, insurance can stay active even if ownership shifts. Just keep your insurer in the loop to avoid any surprises.
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A home in a trust is a great idea, but don’t forget to update your insurance. A quick call to your agent can keep you covered and worry-free!