Make your trust work for you: Update your homeowner's insurance 🏡
Why it matters
Your trust protects your assets and streamlines estate planning. But if your homeowner's insurance doesn’t align, you risk coverage gaps, liability issues, or financial headaches.
The big picture: Without updating your policy, your trust may be an empty legal shell.
Steps to Safeguard Your Assets
Add your trust to your insurance policy. Here's how:
1️⃣ Call your insurance provider: Let them know your home is now owned by a trust.
2️⃣ Provide proof of the trust: Share the trust agreement or certificate.
3️⃣ Update your policy:
- Add the trust as an additional insured or named insured.
- Ensure the liability and property damage protections extend to the trust.
4️⃣ Adjust coverage limits if needed: Trust ownership might change your risk profile.
Watch for common mistakes 🚨
- Not updating the policy: Your insurance provider could deny claims if the trust isn’t listed.
- Misunderstanding "additional insured": This designation offers less coverage than "named insured."
- Skipping annual reviews: Update policies as your trust or property changes.
Benefits of getting it right ✔️
- Streamlined claims: Settlements go to the right entity, avoiding disputes.
- Peace of mind: Trustees and beneficiaries are protected from liabilities.
- Legal clarity: Proper documentation prevents complications in ownership disputes.
The bottom line: Ensuring your trust and insurance are aligned isn’t just smart—it’s essential. Don’t let a gap in coverage put your property or loved ones at risk. Call your insurer today and keep your trust working for you.
