Adding a trust to your homeowner's policy

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
JBTX
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Re: Adding a trust to your homeowner's policy

Post by JBTX » Thu Jul 05, 2018 11:16 am

I had no idea. Just called insurance company and had RLC added as additional insured. No extra charge.

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FrugalInvestor
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Re: Adding a trust to your homeowner's policy

Post by FrugalInvestor » Thu Jul 05, 2018 11:20 am

I emailed the attorney who prepared our trust documents. He replied this morning saying that the trust should be named as additional insured on our homeowner's policy but that no changes are necessary to the umbrella policy.

Apparently there was an instruction about this in the (long) final letter he sent to us about re-titling assets that I missed (or I did it and forgot, we'll see).
Have a plan, stay the course, and simplify, and while you're at it, Ignore the Noise!

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CABob
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Re: Adding a trust to your homeowner's policy

Post by CABob » Tue Jul 17, 2018 6:09 pm

Thanks to all who contributed to this thread. Because of it, I contacted my insurance agent and the policy was updated with no difficulty. I would think that lawyers that set up trusts and suggest the home be placed in the trust would remind the clients to make the insurance policy changes. I still don't know exactly what the downside would be if it wasn't done but didn't want to find out the hard way.
Bob

annielouise
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Re: Adding a trust to your homeowner's policy

Post by annielouise » Tue Jul 17, 2018 7:05 pm

Just wanted to say thanks for this post. I had no idea that we were supposed to do this, but now it is taken care of.

This site rocks! I still learn new info even after hanging out here for years.

Zigadenus
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Re: Adding a trust to your homeowner's policy

Post by Zigadenus » Tue Jul 17, 2018 7:07 pm

Do you add the trust to your homeowner's policy even if the house isn't in the trust?

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FrugalInvestor
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Re: Adding a trust to your homeowner's policy

Post by FrugalInvestor » Tue Jul 17, 2018 7:12 pm

Zigadenus wrote:
Tue Jul 17, 2018 7:07 pm
Do you add the trust to your homeowner's policy even if the house isn't in the trust?
No. It would not apply in that case.
Have a plan, stay the course, and simplify, and while you're at it, Ignore the Noise!

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FIREchief
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Re: Adding a trust to your homeowner's policy

Post by FIREchief » Tue Jul 17, 2018 7:57 pm

CABob wrote:
Tue Jul 17, 2018 6:09 pm
I would think that lawyers that set up trusts and suggest the home be placed in the trust would remind the clients to make the insurance policy changes.
I believe that the good ones do exactly that. People generally don't follow instructions very well.
I am not a lawyer, accountant or financial advisor. Any advice or suggestions that I may provide shall be considered for entertainment purposes only.

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snackdog
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Re: Adding a trust to your homeowner's policy

Post by snackdog » Sat Jun 27, 2020 4:21 pm

This is a very useful thread. I think a lot of people forget or overlook this issue.

treadingwater
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Re: Adding a trust to your homeowner's policy

Post by treadingwater » Mon Jun 29, 2020 2:59 pm

Just phoned Amica to add the trust to the homeowners policy. It will be 25$ per year more.
Never panic. Stop looking so much.

Planner01
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Re: Adding a trust to your homeowner's policy

Post by Planner01 » Mon Jun 29, 2020 6:11 pm

Another thank you here to the OP for posting this question and the people before me who answered because I forgot to do that and attorney never mentioned it. Just called the insurance company to add the trust to the homeowners insurance.

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FrugalInvestor
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Re: Adding a trust to your homeowner's policy

Post by FrugalInvestor » Mon Jun 29, 2020 6:57 pm

Planner01 wrote:
Mon Jun 29, 2020 6:11 pm
Another thank you here to the OP for posting this question and the people before me who answered because I forgot to do that and attorney never mentioned it. Just called the insurance company to add the trust to the homeowners insurance.
Did it cost you more? Mine (State Farm) did not so I was surprised to see that it's possible.
Have a plan, stay the course, and simplify, and while you're at it, Ignore the Noise!

Planner01
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Re: Adding a trust to your homeowner's policy

Post by Planner01 » Mon Jun 29, 2020 8:30 pm

FrugalInvestor wrote:
Mon Jun 29, 2020 6:57 pm
Planner01 wrote:
Mon Jun 29, 2020 6:11 pm
Another thank you here to the OP for posting this question and the people before me who answered because I forgot to do that and attorney never mentioned it. Just called the insurance company to add the trust to the homeowners insurance.
Did it cost you more? Mine (State Farm) did not so I was surprised to see that it's possible.
Not a penny more thankfully.

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celia
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Re: Adding a trust to your homeowner's policy

Post by celia » Mon Jun 29, 2020 8:56 pm

We have Allstate. After reading this thread a year or two ago, we called up and also added our trust (which owns the house) to our homeowner’s policy. No charge.

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