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Adding a trust to a homeowner's policy
Old 06-19-2018, 03:58 PM   #1
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Adding a trust to a homeowner's policy

Our home is in a trust, and it occurred to me that I need to add the trust as an additionally insured on our homeowners and umbrella policies. We are with Allstate and our agent is refusing to do so, stating that Allstate does not want the liability of naming a trust to a personal insurance policy.

Has anyone else had this issue? I called State Farm and spoke to two different brokers, both of which confirmed they had no issues adding the trust to the policy. Is this just an Allstate thing?

The Allstate rep is telling me I'm still completely covered even though the trust is not named on the policy, but every article I've read suggests otherwise.
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Old 06-19-2018, 04:17 PM   #2
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Yeah, if you die in the fire that burns down the house who is the insurance Co going to pay?
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Old 06-19-2018, 04:33 PM   #3
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I had a similar realization about 3 years ago and out State Farm agent acknowledged it was a problem. She added the trust as an additional assured to both policies.
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Old 06-19-2018, 06:33 PM   #4
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I had a similar realization about 3 years ago and out State Farm agent acknowledged it was a problem. She added the trust as an additional assured to both policies.
This is how mine is set up as well. Chase sent detailed instructions.

But Chase also threatened to scuttle the deal because State Farm did the papers as Goog Ly as the owner and The Goog I. Ly Revocable Trust as the additional, where the name on the mortgage is Goog I. Ly, so "they don't match, so we can't confirm you have homeowners insurance." And after three attempts with State Farm to get them to format things didn't come to fruition, I called Chase and turned into the freaked out widow, saying that this was all happening because my husband had died and were they really going to penalize me over a freaking missing initial? Since it was the same homeowners policy we'd had for years, Chase relented.
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Old 06-19-2018, 07:11 PM   #5
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Thanks for the feedback everyone. It looks like Allstate is going to lose my business since they won't add the trust to the endorsement. I've been with them for 25 years and you would think they would try to find a solution for me, but my broker is an airhead. I chose her father 25 years ago and he was great. He retired and gave the business to his daughter. I've never had a good experience with her, so I guess it's time to move on.
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Old 06-19-2018, 07:51 PM   #6
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What is the problem if the trust is not listed? Is there a problem if you are alive or is the problem if you are not?
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Old 06-19-2018, 08:51 PM   #7
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What is the problem if the trust is not listed? Is there a problem if you are alive or is the problem if you are not?
This is one of those areas where I don't know what I don't know, but common sense tells me that if a trust owns my home but the insurance company does not acknowledge this in the policy, and something goes horribly wrong, it could create an opportunity for the underwriter to deny coverage.

I did find a good article that covers some things that can go wrong when you don't get the trust added as an additionally insured. It's worth a read if you find yourself in a similar situation:

https://www.irmi.com/articles/expert...is-transferred
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Old 06-19-2018, 10:25 PM   #8
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This is one of those areas where I don't know what I don't know, but common sense tells me that if a trust owns my home but the insurance company does not acknowledge this in the policy, and something goes horribly wrong, it could create an opportunity for the underwriter to deny coverage.

I did find a good article that covers some things that can go wrong when you don't get the trust added as an additionally insured. It's worth a read if you find yourself in a similar situation:

https://www.irmi.com/articles/expert...is-transferred
Thanks for the link. Brain is not wanting to work right now so I read quickly thru link but only absorbed part of it. Will have to repeat. Meanwhile have the question in to State Farm.
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Old 06-20-2018, 03:53 PM   #9
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OP, Thanks for posting. Contacted State Farm and Liberty Mutual; both wanted to know of our trust
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Old 06-20-2018, 04:33 PM   #10
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It appears that there is an endorsement to the standard homeowners policy to do this:
https://www.mynewmarkets.com/article...-is-an-insured


In particular it appears to be HO 05 43 "Residence Held In Trust (HO 05 43): Homeowners endorsement extending named insured status to a Trust. Also extends protection to the spouse of the trustee and resident relatives of the trustee but only while residing in the residence premises listed in the policy."
So the question might be to the agent does the company offer the endorsement.


In general this is needed because otherwise the person owning the homeowners policy legally does not have an insurable interest since they do not own it.
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Old 06-20-2018, 11:04 PM   #11
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Thanks to the OP for bringing up this issue. I too am with Allstate, and we transferred our home into our trust back when we created the trust 8 years ago. It never occurred to me that this would impact our coverage. Definitely will be following up with our agent. Luckily our renewal is in July so the timing of this is perfect for me.
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Old 06-21-2018, 07:45 AM   #12
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Thanks to the OP for bringing up this issue. I too am with Allstate, and we transferred our home into our trust back when we created the trust 8 years ago. It never occurred to me that this would impact our coverage. Definitely will be following up with our agent. Luckily our renewal is in July so the timing of this is perfect for me.
Let me know if you have any more luck with Allstate than I did. They flat out refused to accommodate me.
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Old 06-21-2018, 07:48 AM   #13
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It appears that there is an endorsement to the standard homeowners policy to do this:
https://www.mynewmarkets.com/article...-is-an-insured


In particular it appears to be HO 05 43 "Residence Held In Trust (HO 05 43): Homeowners endorsement extending named insured status to a Trust. Also extends protection to the spouse of the trustee and resident relatives of the trustee but only while residing in the residence premises listed in the policy."
So the question might be to the agent does the company offer the endorsement.


In general this is needed because otherwise the person owning the homeowners policy legally does not have an insurable interest since they do not own it.
The article I reference in my earlier post addresses this endorsement and the limitations of it. In addition to this endorsement it is important to make sure the policy names the trust as additionally insured.
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Old 06-21-2018, 07:52 AM   #14
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Let me know if you have any more luck with Allstate than I did. They flat out refused to accommodate me.
Did you contact Allstate directly? Or, did you only rely on the agent. Not that you donít have a good reason to leave, perhaps a quick call can straighten this out while you look for a new agent or company.
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Old 06-21-2018, 03:38 PM   #15
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Did you contact Allstate directly? Or, did you only rely on the agent. Not that you donít have a good reason to leave, perhaps a quick call can straighten this out while you look for a new agent or company.
Well, I've tried twice. I can't find any phone number to reach Allstate outside of their useless customer service line which has entry level people who only want to refer me back to my agent, who is creating this problem for me in the first place.

Does anyone have any other suggestions on how to get around them?
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Old 06-21-2018, 04:16 PM   #16
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Well, I've tried twice. I can't find any phone number to reach Allstate outside of their useless customer service line which has entry level people who only want to refer me back to my agent, who is creating this problem for me in the first place.

Does anyone have any other suggestions on how to get around them?
Write a letter to the CEO telling him the problem.

I did find this website that gives a phone number for Corporate HQ of Allstate
Allstate Corporate Office & Headquarters It also gives the address. For this sort of situation a letter may work better than a phone call.


BTW could also contact a different agent and ask for the policy to be transferred. You could call the second agent, and if they are willing to handle the

situation, call the first agent and say fix or transfer.
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Old 06-21-2018, 04:20 PM   #17
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BTW out of curiosity did the lawyer who set up the trust advise you about insurance? It seems to me that the lawyer should tell you about this gotcha. (That essentially you need as named insureds the trust and the owners, one for the structure, and one for the personal goods and liability)
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Old 06-21-2018, 04:50 PM   #18
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BTW could also contact a different agent and ask for the policy to be transferred. You could call the second agent, and if they are willing to handle the

situation, call the first agent and say fix or transfer.
I tried that too. They told me I would need to cancel the policy and wait six months before they could assign me a new agent. Another Allstate company policy. I'm told it's to prevent agents from stealing existing clients.
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Old 06-21-2018, 04:51 PM   #19
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BTW out of curiosity did the lawyer who set up the trust advise you about insurance? It seems to me that the lawyer should tell you about this gotcha. (That essentially you need as named insureds the trust and the owners, one for the structure, and one for the personal goods and liability)
Nope. It came up here on another thread. Otherwise I would have missed it. That's why this forum is so valuable.

And yes, he should have told me to look at my insurance. I guess he forgot.
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Old 06-21-2018, 05:36 PM   #20
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Nope. It came up here on another thread. Otherwise I would have missed it. That's why this forum is so valuable.

And yes, he should have told me to look at my insurance. I guess he forgot.

Actually had you had a serious claim against the structure, you might have been able to sue the lawyer for malpractice. It sounds awefully close to malpractice.

BTW you could also call the state insurance department.
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