Questions about Homeowners Policy and Revocable Trust Todd Mathers asked 5 months ago
Questions about Homeowners Policy and Revocable Trust

My revocable living trust holds title to my home, but my homeowner’s insurance policy is still in my personal name. I’ve read that it’s advisable to update the policy so the trust is reflected as an additional insured, to avoid potential claim issues. I want to contact my insurer to request this change, but I’m concerned they may treat this as a material change and use it as a reason to rewrite or cancel my policy especially given the current instability in California’s homeowner’s insurance market.

My questions:

Would a homeowner’s policy in my personal name cover a claim when my revocable living trust holds title to the insured property?

Can a revocable trust be added to a homeowner’s policy via endorsement, or does this require writing a new policy?

Could requesting this change increase my risk of non-renewal, cancellation, or higher premiums?

What is the best way to approach my insurer to make this update without triggering underwriting scrutiny?

I want to ensure my trust is properly protected without jeopardizing my existing coverage. Thank you!

1 Answers
Answer for Questions about Homeowners Policy and Revocable Trust United Policyholders Staff answered 5 months ago

Hi Todd, these are all great questions and we will provide what information we can to assist you in making the best decision for your family and situation.

First, check out a previous UP consumer “Ask an Expert” answer, which you can find here:

https://uphelp.org/ask-an-expert/question/insurance-when-home-is-in-a-trust/

Typically, the Additional Insured (your trust) is added to a policy through an endorsement; you should not need another new policy. Carriers will want copies of your trust documentation and paperwork to verify. And if you have a lender and haven’t updated them with the trust information, you should do so as well. This is especially important if your insurance policy is bundled with your loan payment and your lender is paying the policy. If you ever utilize your policy and have a claim, you will want to make sure that all your “ducks are in a row,” and your carrier executes checks properly with the correct payees so as not to create unnecessary delays for you and your repairs.

We would recommend that you contact your carrier directly to advise them of the trust change and ask what additional documentation is needed or what premium changes, if any, will occur for you.

Warmly,

UP Staff