insurance – The Real Estate Beat

I heard that if your home was in your trust and one hadn’t updated their home owners insurance policy to reflect that change – there could be issue. So I combed the web for a good article to share with you. Please note, I have no affiliation with this company nor the author. I simply thought it was concise and I wanted to share. I read this article HERE, by Judd Matsunaga.

Do You Have a Home that has been Titled into your Trust?

If you’ve transferred your home’s title or deed into your trust’s name, it’s crucial to inform your insurance agent to maintain proper coverage. Some insurance companies require notification of such changes to recognize the trust as an insured entity under your policy. Without this, your trust might not be covered, leading to potential coverage issues. Typically, if the named insured is also the trustee, there shouldn’t be a problem, but it’s always better to be safe than sorry.

The Importance of Updating Your Policy

When your home is owned by a trust, your homeowners insurance policy should reflect this ownership to ensure comprehensive protection.This often involves adding the trust as an “additional insured” on your policy. By doing so, both you and the trust are covered for property damage and liability claims. Failing to update your policy can result in significant coverage gaps, leaving the trust exposed to potential risks.

Recent Los Angeles Wildfires Highlight the Need for Proper Coverage

Homeowners insurance and living trust issues re: the family home in light of the 2025 Los Angeles wildfire disaster.

The recent Palisades and Eaton wildfires in Los Angeles County have been devastating, resulting in the loss of life and the loss of numerous homes highlighting the importance of adequate insurance coverage. The Palisades Fire alone has burned over 23,000 acres and destroyed at least 10,000 structures in Pacific Palisades, Malibu, and areas of the Santa Monica Mountains.1

Similarly, the Eaton Fire in the Altadena area has caused extensive damage, destroying over 7,000 structures and leading to significant loss of life.²

These tragic events underscore the necessity of ensuring your homeowners insurance policy accurately reflects your home’s ownership status, especially when it’s held in a trust.

Risks of Not Informing Your Insurer

If you fail to notify your insurance company that your home is titled in a trust, several issues may arise:

Coverage Denial: In the event of a claim, your insurer might deny coverage if the policy doesn’t list the trust as an insured party.
Liability Exposure: Without proper policy updates, the trust may not be protected against liability claims arising from incidents on the property.
Personal Property Gaps: The trust’s personal property within the home might not be covered if the policy isn’t correctly adjusted.

Expert Recommendations

To ensure your home and trust are adequately protected, consider the following steps:

Review Your Policy: Examine your current homeowners insurance policy to understand existing coverage.
Consult Your Insurance Agent: Discuss the change in property ownership to a trust and determine the necessary policy adjustments.
Add the Trust as an Additional Insured: Ensure the trust is listed appropriately on your policy to cover its insurable interests.
Confirm Coverage Details: Verify that both the structure and personal property are covered under the updated policy.

By proactively updating your homeowners insurance policy to reflect your home’s ownership by a trust, you can safeguard against potential coverage issues and ensure comprehensive protection for your property and assets.

Need help ensuring your trust and homeowners insurance align? The expert Estate Planning attorneys at Elder Services of California are here to assist. Our team can review and amend your trust to ensure it’s up to date and fully protects your assets. Don’t wait until it’s too late—schedule a consultation today to gain peace of mind for you and your loved ones.

I read this article HERE. Please note, I searched for this article, I have NO affiliation with this insurance company, nor have I done any work with them. I simply thought the article was well written and covered the issue I was looking into.

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In light of the home fire in San Carlos this weekend, my Monday Market Update video on Instagram and Facebook reminds us of the importance of Home Owners Insurance – also known as Fire Insurance.

Please note, Flood and Earthquake insurance are entirely different and not part of today’s topic.

If you’ve ever bought a home with a home loan, you have Home Owners Insurance. However, did you know that as time goes by, as you update your home, as you buy a better computers, maybe a new wedding ring, or upgrade to new appliances, your policy may fall short? All that is your home and all that is inside your home falls under your Home Owners Insurance and should something happen – you want and need to ensure you are properly covered. In light of the Santa Rosa fires – this topic should be top of mind. Fire is one thing, we know it will consume everything in sight. But the fire isn’t the only damage. Imagine a small attic fire – you think – that’s ok my furniture wasn’t burned. Did you consider what it takes to put out a fire? How to get to the fire? Sometimes the water damage in putting out the fire is worse than the fire itself. Nonetheless it is imperative to make sure you are properly covered.

Now, right now, this week, is a great time to call your Insurance Agent and set a revaluation appointment to go over your policy together. Chances are, your home has changed since the day you bought it. Don’t forget to speak to your Insurance rep about CODE UPGRADE. Especially if you bought your home several years ago. Adding the code upgrade to your policy can and will make all the difference if you are impacted by a fire or other home damage. Chances are the policy in place is to rebuild the home to – let’s say – to 1960’s standards but your home has been updated, you want and need to build your same home by today’s standards and costs – so that means you need a Code Upgrade on your policy.

Take some time to document your personal items of value. Jewelry, computers, antiques, collectables, your furniture, clothes, kitchen cabinets, granite counters, name brand – top of the line appliances, these all cost money to replace. Gather as much information as you can so you can get the proper coverage. A little extra work today can make all the difference should something happen tomorrow.

The Caton Team – we are Realtors and cannot give any advice beyond Real Estate. This blog post is meant as a gentle reminder to call your Insurance provider directly and set a revaluation appointment as soon as possible.

Oh – on that note, you do NOT have to be a home owner to insure your personal property. Renters Insurance is just as important and covers the TENANTS personal belogings. You can’t rely on the Landlords Insurance to make you whole – what if they are under insured? Protect yourself and your life – get home and/or renters insurnace.

Got Questions – The Caton Team is here to help.

We strive to be more than just Realtors – we are also your home resource. If you have any real estate questions, concerns, need a referral or some guidance – we are here for you. Contact us at your convenience – we are but a call, text or click away!

The Caton Team believes, in order to be successful in the San Fransisco | Peninsula | Bay Area | Silicon Valley Real Estate Market we have to think and act differently. We do this by positioning our clients in the strongest light, representing them with the upmost integrity, while strategically maneuvering through negotiations and contracts. Together we make dreams come true.

A mother and daughter-in-law team with over 35 years of combined, local Real Estate experience and knowledge – would’t you like The Caton Team to represent you? Let us know how we can be of service. Contact us any time.

Email Sabrina & Susan at: Info@TheCatonTeam.com

Call us at: 650-568-5522 Office: 650-365-9200

The Caton Team – Susan & Sabrina
A Family of Realtors
Effective. Efficient. Responsive.
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Berkshire Hathaway HomeServices – Drysdale Properties

Sabrina DRE# 01413526 / Susan DRE #01238225 / Team DRE# 70000218/ Office DRE #01499008

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