Have You Added Your Trust as an “Additional Insured” to Your Homeowner’s Insurance Policy?

If you already have a Trust, have you added your Trust as an “additional insured” to your homeowner’s insurance policy?

If not, your insurance coverage could be at risk.

In light of recent LA wildfires, we’ve seen tragic cases where homeowners lost their properties and faced denied insurance claims. Why? Because their homes were legally owned by their Trusts, but only the individuals were named on the homeowner’s insurance policy.

This leads to a legal issue called rescission. Rescission allows the insurance company to void your policy entirely — as if it never existed — if they find “material false statements” on your insurance application. These statements don’t even have to be intentional. For example, if your Trust owns your home but your policy only names you personally, the insurer could argue that this is a material error and use it to deny your claim. When a large loss occurs, insurers scrutinize every detail of your policy to look for errors they can use to deny coverage.

The good news?

This issue is easy to prevent.

➡️ Simply call your insurance provider and ask to add your Trust as an “additional insured” on your homeowner’s insurance policy.

It’s a small step that can save you a massive headache down the road. Adding your Trust as an additional insured is a simple and important step to safeguard your home and your family’s future. Please, don’t wait - take action today!

📲 If you have any questions about your Trust or want to ensure your estate plan is fully funded and protected, reach out to On Point Estate Law at (619) 273-3329 or schedule a call here to safeguard your family's future.