LA Wildfires Raise Questions from Homeowners
Jan. 23, 2025
As many people have lost their homes in the current LA wildfires, news sources, individuals, and lawyers have been reporting insurance claim denials claiming that if a home is in trust and not named as an additional endorsee on the home insurance policy, claims are being denied.
Our firm has been getting many questions from clients about their homes being in trust and potential homeowners insurance claim issues. Here is what you need to consider:
If you own a home in California, it is usually a good idea to have it retitled into the name of your trust for probate avoidance. This can save your estate tons of time and money in the event you pass.
We always inform our clients and reiterate that after the deed is recorded in the name of their trust, they should reach out to their home insurance to have the trust listed as an additional endorsed on the policy. We recommend this for a number of reasons:
If there is a claim and your house is titled in the name of the trust, we do not want to give your insurance company any excuses for denying the claim.
If there was a claim, and you pass away, we want the claim check paid to your trust vs. your estate so that it can avoid triggering a possible probate. If your trust is named as an endorsed, the insurance company can issue a check to your trust vs. your estate.
If you become incapacitated or pass, your successor Trustee will be able to communicate with your insurance company if the trust is listed as an additional endorsed.
We strongly suggest that if your house is titled in the name of your trust, that you reach out to your home insurance company to make certain they have the trust listed as an additional endorsed on the policy. While this is on your mind, it is also a great time to revisit your assets to make sure that they are either titled in the name of your trust or you have proper beneficiaries designated on your accounts. Afterall, the best way to avoid the cost and time of probate is to make sure you have titled your assets in your trust.