New home insurance and estate plan

[tricky88]

I live in California and my home insurance was recently canceled. Supposedly because of trees overhanging the house, but my guess is the company just does not want to insure CA homes any longer. I got a quote through Geico (they have our car insurance) and it seemed fine except for the question about the title of the house. It is paid off, and the title is held in our estate plan, along with almost all of our finances. Today I got a letter from Homesite, which is the company Geico contracted through, saying they can't insure the house because the "Home is in the name of an Estate."

Has anyone else had to deal with this? I don't understand why it's a problem, as the estate is really just me and my spouse. I will call them on Tuesday, but if anyone has advice, I'd love to hear it.

And for those with estate plans, do you keep the title of your house in the estate?

Thank you as always.
Mark

 

[Midpack]

Our home is in the name of our revocable trust along with most, but not all, of our assets. I have never had an issue with home insurance, Liberty Mutual or Travelers in our case. Best of luck.

 

[OldShooter]

... the title is held in our estate plan, along with almost all of our finances. Today I got a letter from Homesite, which is the company Geico contracted through, saying they can't insure the house because the "Home is in the name of an Estate." ...

Not quite sure what having a title in an Estate actually means. Often an estate plan has at least major assets held in rev trusts, aka "living" trusts." Our houses, for example, are held by the "Oldshooter Trust, DW, trustee." or the reverse, the "DW Trust, Oldshooter, trustee. But I don't think "an estate" is even a legal entity for someone who is alive.

Can you look up the ownership of your house in the online county GIS and see what it says? Depending on what you find you may need to buy some attorney time to straighten out the title language.

 

[rk911]

Our home is in the name of our revocable trust along with most, but not all, of our assets. I have never had an issue with home insurance, Liberty Mutual or Travelers in our case. Best of luck.

Same with us. No issue with our insurer (State Farm).

 

[Dtail]

The house is in a trust. No insurance issues.

 

[MichaelB]

Our home is in the name of our revocable trust along with most, but not all, of our assets. I have never had an issue with home insurance,

Same with us. House in a trust, cars not, no problems with any insurance - homeowners, auto, flood and liability. All with USAA.

 

[pb4uski]

Yeah, I think the OP needs to clarify the house ownership, because the house being owned by an estate plan makes no sense at all. I suspect the OP means that the house is owned by a revocable living trust, but time will tell. If the house is held by a revocable living trust then there should be no problem insuring it.

 

[Koolau]

I'm guessing your first instinct may be correct - Insurance companies in your area may be looking for loop-holes to drop coverage. Is your area a "fire" area or other recent "disaster" area? I've mentioned that our insurance is going up - dramatically because of the Lahaina fires - even though that's on another Island. The insurance companies are trying to recoup their losses and are threatening the state that they will all pull out if they are not allowed to raise rates. YMMV

 

[isisdave]

An "estate plan" is not a thing. Being owned by an estate means the owner died, and there is some delay is transferring the home to the heir or heirs, or it's going to be sold, or something. Meanwhile, the executor has transferred the title into the name of the estate. Even in this case, someone insures these properties; ask a broker. But definitely get clear on how the property is titled.

A trust should not affect insurability.

There's another option in California -- the state now permits residential properties to have a Transfer on Death deed. Google this for more info, and ask an attorney whether that's a better idea than whatever you have now.

 

[tricky88]

Thanks all. I used the wrong term, estate instead of trust, and that was the problem.

 

[Kings over Queens]

Limb's hanging over the house or garage is an exposure, limb falls, punches hole in roof, results in claim. Insurance company's will notice condition of trees and proximity to structures during inspections and its not uncommon for them to decline issuance or cancel a policy for those reasons.

Not all carriers will accept a house on a personal lines homeowner form when the deed is held in a revocable or irrevocable trust or an LLC. Life estate deeds are almost always accepted.

 

[OldShooter]

... if anyone has advice, I'd love to hear it. ...

WADR don't try to be your own insurance agent. Network with friends and acquaintances, professional contacts like CPAs, attorneys, etc. to find a good independent insurance agent and drop your troubles in his lap. Strong odds he has run into this before and knows companies where he can place the business.

 

[pb4uski]

I live in California and my home insurance was recently canceled. Supposedly because of trees overhanging the house, but my guess is the company just does not want to insure CA homes any longer. I got a quote through Geico (they have our car insurance) and it seemed fine except for the question about the title of the house. It is paid off, and the title is held in our estate plan, along with almost all of our finances. Today I got a letter from Homesite, which is the company Geico contracted through, saying they can't insure the house because the "Home is in the name of an Estate."

Has anyone else had to deal with this? I don't understand why it's a problem, as the estate is really just me and my spouse. I will call them on Tuesday, but if anyone has advice, I'd love to hear it.

And for those with estate plans, do you keep the title of your house in the estate?

Thank you as always.
Mark

I think your guess is correct. Did the insurer give you a reason for cancellation in their cancellation correspondence. If they did and it was overhanging limbs then they should have given you an opportunity to remedy the situation. If they claim cancellation because of overhanging limbs and didn't give you a chance to have the offending limbs trimmed then I would file a complaint with your state insurance regulator. It won't change your cancellation but will cuase them some hassle responding to the complaint.

On the second part, contact them and let them know that you misspoke and the home isn't in the name of an estate as you said but is owned by a trust. Or is it owned by his and her trusts... that would be more common. You can even print out the ownership from your local website or property tax bill to clarify the situation. But you brought it on yourself by mischaracterizing the ownership of the home which created confusion.

For example, my parents real estate were owns 50% by dad's trust and 50% by mom's trust.

 

[cathy63]

Thanks all. I used the wrong term, estate instead of trust, and that was the problem.

So was Geico willing to insure your home once you explained the actual ownership to them?