There are many reasons people choose to set up a trust or LLC. Trusts are commonly used for estate planning and can help avoid probate, while LLCs are often used to hold rental or investment property and manage liability. Determining which structure is right for you is best handled by your attorney or financial advisor.
What you may not know is that changes to ownership can also impact your liability and umbrella coverage, so if you are considering changes, it’s important to review your full insurance coverage—not just the home itself.
Why Does it Matter?
The way your insurance responds can change significantly when you change the legal ownership of your home. If your policies do not properly reflect the trust or LLC as an “Additional Insured” or “Named Insured,” you could face delays (or even denial) of a claim if your home is damaged or someone is injured on your property.
Ownership structure matters. Here’s how:
-
Homes in a trust can often remain on a standard homeowner’s policy, but the trust must be properly listed and structured on the policy.
-
Homes in an LLC may not qualify for a standard homeowner’s policy at all and may require a different type of coverage, such as a dwelling fire or commercial policy.
What to do if you are considering—or have already transferred—your home into a trust or LLC
Contact us immediately. We will review your current coverage and make any necessary updates to ensure your insurance aligns with the ownership of the property.
To properly update your coverage, we may the following information:
-
Who is listed in the trust or LLC
-
The purpose of the trust or LLC
-
Whether the property is tenant-occupied
-
Whether the entity owns additional properties
-
Whether the LLC conducts business activities
-
Whether the LLC has employees
Your home is one of your most valuable assets. Let’s make sure it’s protected correctly.
