More on Insuring Homes in Living Trusts
A colleague of mine, Dennis Toman of Greensboro, contacted the North Carolina Deparment of Insurance about the issue of insuring homes owned by living trusts. Bernard Cox, assistant to the Deputy Commissioner, stated that:
We tend to agree with your insurance company that the manual eligibility rule for HO policies would allow this arrangement [keeping the homeowners policy in the name of the individual owner and naming the trust as an addtional insured]. The individual maintains an insurable interest as long as he/she remains primary resident and has life time rights. I am stating the rule would allow it but individual companies do have different underwriting requirements, please understand.
This is good news, but those who own real estate in their living trusts should always check with their insurer. I am informed that GEICO will allow the above-referenced method.
