Is Your Home in a Trust? Protect Your Property: Update Your Insurance Policy

The Pacific Palisades Fire and Eaton Fire have been stark reminders of how quickly disaster can strike. For many homeowners, the aftermath has revealed a surprising roadblock: insurance claims denied because the policy’s named insured doesn’t match the title on the home.

This issue often arises when a property is placed in a trust—a common estate planning move that protects assets and simplifies inheritance. While transferring ownership to a trust is a smart financial decision, it can unintentionally jeopardize your insurance coverage if your carrier isn’t notified.

Here’s the problem: Most insurance companies require the named insured on your policy to match the legal owner of the property. When you transfer ownership to a trust but fail to update your policy, the insurer may claim the policy is invalid, leaving you vulnerable when you need coverage most.

The recent wildfires have tragically underscored how critical it is to address this gap before it’s too late. To safeguard your home and your financial security, take these steps:

1. Notify Your Insurer Immediately: As soon as your property is placed in a trust, inform your insurance carrier or agent. They may need the trust documents to process the update.
2. Update the Named Insured: Ensure the policy lists the trust as the legal owner, while also adding you or your family as additional insureds for liability protection.
3. Review and Adjust Coverage: Wildfire risks continue to grow in California. Use this opportunity to review your policy limits and ensure you have adequate coverage for the full replacement value of your home.

The devastation caused by the Pacific Palisades Fire and Eaton Fire is a wake-up call for all of us. Don’t wait until the next disaster to discover gaps in your coverage. Updating your insurance policy after placing your property in a trust is a simple step that can make all the difference when it matters most.

At Williams Insurance, we’re here to ensure your coverage is solid and up-to-date. Contact us today for expert guidance on protecting your property.