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March Newsletter 2025

When it comes to protecting your home, having insurance isn't enough—you need to make sure it's structured correctly to avoid costly claim denials. One often-overlooked issue arises when a home is placed in a Revocable Trust but the trust itself isn’t listed on the insurance policy.

Recent disasters, like the LA wildfires, have highlighted this critical issue, with homeowners facing unexpected insurance battles simply because their trust was not named as an additional insured. Without this designation, insurance companies argue that the policyholder no longer has an “insurable interest” in the home—potentially leading to claim denials when coverage is needed the most.

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How to Make Sure Your Home Is Fully Covered

If your property is held in a Revocable Trust, take these proactive steps to ensure it remains fully protected:

Review your insurance policies to confirm whether the trust is listed as an additional insured.

Contact your insurer or broker immediately if the trust is not included. Provide the legal title of the trust and request it be added to all applicable property policies.

Verify that the trust name is listed exactly as it appears on legal documents to prevent disputes.

Obtain written confirmation of the update from your insurance provider and keep it on file.

 

Why This Step Matters

Failing to add your trust as an additional insured leads to serious consequences. Beyond the risk of a denied claim, it will also:

·      Disrupt your estate planning strategy, potentially complicating asset distribution and putting your long-term financial goals at risk.

·       Delay insurance payouts by forcing them through probate, leaving you or your beneficiaries with unnecessary legal and financial burdens.

·      Expose both you and the trust to significant financial loss, making it harder to recover from unexpected disasters.

A simple policy update now will prevent these costly complications later. Don't assume your home is fully protected, take action today to safeguard your assets, secure your estate plan, and ensure that your trust-owned home remains covered when you need it most.

(Inspired by insights from United Policyholders, a trusted resource on consumer insurance issues.)

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Khadija Gul
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Previous Editions

June Newsletter 2025
Richard Farrand
June 2025
May Newsletter 2025
Richard Farrand
May 2025
April Newsletter 2025
Khadija Gul
April 2025
February Newsletter 2025
Richard Farrand
February 2025
January Newsletter 2025
Richard Farrand
January 2025
December Newsletter 2024
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December 2024
November Newsletter 2024
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November 2024
October Newsletter 2024
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October 2024
September Newsletter 2024
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September 2024
August Newsletter 2024
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August 2024
July Newsletter 2024
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July 2024
June Newsletter 2024
Richard Farrand
June 2024
May Newsletter 2024
Richard Farrand
May 2024
March Newsletter 2024
March 2024
February Newsletter 2024
February 2024
January Newsletter 2024
United Policy Holders
January 2024
December Newsletter 2023
United Policy Holders
December 2023
November Newsletter 2023
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November 2023

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