I live in a home that is held in a revocable trust in New York State, where I am a beneficiary. We’re trying to figure out what type of homeowners insurance we should obtain. Our current agent mentioned that the trust functions as the landlord, making us tenants in the property. While we can go with this arrangement, I’m curious if anyone else has any recommendations or alternative suggestions. Thank you!
Home in a revocable trust where I’m beneficiary and currently living in, what type of insurance do I get?
It’s great that you’re seeking clarity on your home insurance needs in this situation. Since the home is in a revocable trust and you’re living there as a beneficiary, it’s important to ensure you have the appropriate coverage.
Homeowners Insurance for the Trust: The trust can hold the homeowners insurance policy, and it typically covers the property itself. In this case, the trustee (who manages the trust) would be listed as the policyholder. This policy would cover the home against risks like fire, theft, and liability.
Renters Insurance: If the insurance agent is stating that you are considered tenants, it may be wise to consider renters insurance for your personal belongings. This will protect your possessions in case of theft or damage, as the homeowner’s insurance may not cover your personal items.
Clarify Your Status: It might be beneficial to clarify your status with the insurance agent. If you are both the beneficiary and living in the home, you may have more rights than typical tenants. You can ask if you are eligible for homeowner’s insurance instead of renters insurance.
Consult with Professionals: Given the complexities of trusts and insurance, it may also help to consult with an attorney experienced in estate planning or a different insurance agent who can provide insights specific to trust-to-beneficiary situations in New York State.
Ultimately, ensuring both the property is protected and your personal belongings are covered is crucial, so exploring these options thoroughly will provide you with the coverage you need.