According
to an article in The
Ledger - Will 2020 Give Florida a Break In Hurricane Season? , there
is only a 10% change that we'll see a less than normally active season in 2020.
Fellow
attorneys have reported cases where insurance carriers refuse to honor a claim
when the homeowner's insurance policy does not name the homeowner's trust as an
additional insured. In other cases, the insurance company has dropped the
policy when the homeowner dies. What's the solution? Ask your
insurance agent 2 important questions:
- Is my trust listed as an "additional insured" or "named insured?"
- Will coverage continue in the event of my death, or if no one is living in my home?
The
concept of an additional insured is used to protect third parties, such as
banks who loan money in exchange for a mortgage. They want to be sure
that the mortgage is paid before money goes into the pocket of the
homeowner. It's not unreasonable for you to expect continued coverage for
the successor trustee of your revocable trust if they hold title to your
home.
In
2017, Citizens Property Insurance Corporation announced its plans to cover
property held in trust. The following guidelines
were posted on its web site:
Residence Held in
Trust
Under the new rules:
A
homeowner, dwelling or a condominium unit policy can be issued when legal
title to the residence is held in trust.- Eligible policy types can be endorsed to insure a trustee and, if applicable, a trust.
- The trust, by itself, cannot be the named insured. The name(s) of the trustee(s) must precede the name of the trust as the named insured.
- Trustees that are corporations, partnerships or limited liability companies (LLCs) may be eligible for dwelling policies without liability coverage.
Finally,
if you agent says your trust can't be added as a named insured or an additional
insured, ask your agent to help you find a company that will protect you and
the beneficiaries of your trust.
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