Rumors are swirling about insurance companies giving homeowners grief about the ownership of their homes following disasters. Recent events in California have made it apparent that insurance companies may deny covering damage to your home or delay providing assistance if title to your home is held by a revocable living trust and you did not add the trust as an additional insured party.
It is common practice in California for individuals with a revocable living trust to transfer title of their property to their revocable living trust to avoid probate at death. This type of transfer results in the trust being on title as the owner of the property. If your home is titled in the name of your revocable living trust, we recommend contacting your insurance company to discuss with them if your revocable living trust should be added to your homeowner’s insurance policy as an additional insured party.