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Are you Covered?
With all the recent fires in Southern California, home insurance has been at the forefront of people’s minds and the news. One particular concern circulating is that insurers may not pay out on policies when the policy is written in the homeowner’s personal name, but the property’s title has been transferred to a trust. This means the name on the policy does not match the title of the property.
This situation sometimes occurs when homeowners place their properties into a trust but forget to update their insurance to reflect the change. We’ve heard about this issue on the radio, seen it on social media, and received emails regarding it.
Does the Name On Your Policy Match Your Home’s Title?
It seems almost impossible that you could be paying for insurance on your home, yet your insurance company might refuse to pay out for damages simply because the name on the policy is incorrect. But why take the risk? Verify that your home insurance policy and title match—it’s worth checking.
We spoke to several insurance brokers, and some believed that such a refusal by an insurance company might be possible, which was disheartening.
We also consulted insurance broker Aimee Graziani (Lic #0I15432) with Alive Insurance Service (Agency Lic #0E70937), and she had a different perspective. She explained that a claim could only be denied if a home is titled in the name of a trust and the trust is not added to the policy, provided the owner is not named in the trust at all—meaning they are neither the trustee nor a beneficiary and are simply not mentioned in the trust. Aimee recommends adding the trust to the home insurance policy as “additional insured.”
Therefore, if the policy is in your personal name and the home’s title is in a trust, but you’re listed in the trust, the insurance company would likely have to cover you.
We also spoke to someone at the California Department of Insurance, who agreed with Aimee’s opinion but added that there are no guarantees.
One scenario to be cautious about involves property inherited outside of a trust. If a parent dies without a trust and the child inherits the home but never transfers the insurance policy to their name, they could be out of luck on coverage in such a case.
If you have insurance questions, call your broker. If you need one, give Aimee a call at (510) 524-3200 ext. 1006 or email aimee@aliveinsurance.com —we’re confident she will be able to assist you.
*Note: This may also apply to your earthquake insurance policy. We recommend checking with your insurance adviser.
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For more of what’s happening in and around San Carlos, please visit San Carlos Life Blog
About the Authors
Mark Martinho and Vivienne Kelvin are the hosts of San Carlos Life and have been residents of San Carlos for years. While running San Carlos Life together with an awesome team, Mark and Viv are also in the business of real estate. They are co-owners of Vabrato Real Estate, a luxury real estate brokerage serving the City of Good Living, and the whole of San Mateo and Santa Clara counties.
With over 30 years of combined experience in the business and 95% of their clients coming in from referrals, Mark and Viv take great pride and joy in exceeding your expectations.
