HOME OWNERS INSURANCE AND ESTATE PLANNING By Lois G. Andrews If you have transferred an interest in property, it is important to make sure that your casualty and liability insurance companies are aware of the new ownership. If the companies have not been notified, you may run into difficulties if you make a claim for damage or if you are sued for damages. Common transfers that you may not have realized require a change in insurance follow: a) Transfers to and from Trust. If you put your house in a revocable trust, the trustee should be added as a named insured on your policy. Similarly, if the property is removed from the trust, whether to be returned to the Grantor or to pass to a trust beneficiary, the new owner should be on the insurance policy. b) Transfers with Retained Life Estates. If you deed a remainder interest in your house, but reserve a life estate, both the owner of the life estate and the owner of the remainder interest should be named on the policy. c) Outright Gifts. If property is gifted, the person who receives the property should make sure the insurance is in his name. d) Estates. When a person dies, both the estate of the decedent and the name of anyone who has been specifically designated in the Will to inherit a particular piece of real estate should be included on the policy. Title Insurance. You also need to be aware that such transfers can end your coverage under title insurance policies. Therefore, if you transfer property to a trust, you should get an endorsement from your title insurance company to continue the coverage. Return to Top                 Return to Index         Copyright © 2003 - 2006 by Andrews & Young, P.C. You may reproduce materials available at this site for your own personal use and for non-commercial distribution. All copies must include the above copyright notice. The information you obtain at this site is not, nor intended to be legal advice. You should consult an attorney for individual advice regarding your own situation.