Putting your property in a trust might seem like a legal decision only, one that has nothing to do with your home insurance. After all, why would a trust impact a fire claim if the point of the arrangement is to protect ownership and avoid miscommunications? However, the reality is that your home insurance may be able to deny claims based on their knowledge of whether the property is in a trust. Here, the team at Amy Tounget Insurance Agency LLC will explain what you should know and how to avoid an unpleasant surprise.
Home Insurance and Trusts
The rules regarding home insurance and trusts vary from company to company, making it critical not to make assumptions about your coverage. While you are typically required to disclose whether your home is in a trust when you first apply for coverage in Texas, things can become unclear if you put your home in a trust between your initial approval and subsequent yearly renewals. In that case, you might not think to update your coverage in Midlothian, TX, even though failure to do so could result in a denied claim.
What Should I Know About Home Insurance Disclosures?
The general rule is that it’s always a good idea to update your home insurance whenever there’s a major change. This doesn’t mean increasing your coverage every time you paint a room. Still, it does mean informing your home insurance carrier of major renovations, purchases (e.g., a new art piece), or changes in property ownership rights.
If you have questions about home insurance in Midlothian, TX, the staff at Amy Tounget Insurance Agency LLC can help you learn more about how your coverage is impacted. Plus, we can help you find a policy that works for your coverage needs, both today and as your needs evolve.
