If you’ve placed your home in a trust as part of your estate planning, which many people wisely do, it is wise to complete another task: add your trust to the homeowner’s policy. This detail can make or break your financial life, says a recent article, “Homeowners insurance warning: Why your trust must be listed on your policy,” from WFAA.
Regardless of who has paid the premiums and how long the insurance policy has been in place, if you don’t list the trust as a policyholder, the insurance company can deny coverage. Many homeowners who have created trusts to pass their property along after their death have encountered problems having their homes repaired or rebuilt after wildfires, floods and tornadoes because the trust wasn’t added to the insurance policy.
In most cases, the trust needs to be listed as an additional insured. However, it is essential to verify with both your estate planning attorney and your insurance company to ensure that your property is adequately protected. If it isn’t and you suffer a loss and file a claim, you may learn you don’t have the required “insurable interest.”
You may end up in court with no guarantee of a successful outcome. Insurance companies are notorious for pushing back on expensive claims when there’s wiggle room, and the owner of the property not being listed as an insured offers plenty of wiggle room to the insurance company.
According to the article, the owner of the property is the only entity with an insurance interest in the property. If the owner is the trust, the trust must be listed on the insurance policy.
Do your due diligence and ensure the homeowner’s insurance policy includes all the necessary individuals and entities. It’s essential to do this now, before a claim is filed and rejected.
If you have placed your home in a trust and haven’t yet updated the deeds or other critical documents, this article should provide the necessary incentive.
Once an experienced estate planning attorney creates a trust, the details must be carefully attended to for the trust to function as intended. If you create a trust and fail to fund it, the trust won’t work. This includes retitling investment accounts, business entities and insurance policies.
It is wise to add your trust to the homeowner’s policy. If you don’t have an estate plan in place, now is the time to consult with an experienced estate planning attorney and start the process. Once the estate plan is in process, ask your attorney for a checklist to be sure you get all the necessary tasks done. You’ll sleep better knowing your family, your home and your future are protected. If you would like to learn more about estate planning and insurance, please visit our previous posts.
Reference: WFAA (Aug. 13, 2025) “Homeowners insurance warning: Why your trust must be listed on your policy”
Image by Michelle Pitzel
