OfflineOk, I can not execute the trust and fund it until I can get insurance. I've gotten several quotes in the $400s. HOWEVER, once I tell them I will be putting the property into the trust, they either can't or won't write it to the trust or its over $2000 a year to do so. I've tried to explain to them what a trust does and that the loss payee is STILL me, but they don't care. Does anyone have any insurance companies that realize putting a property in a trust is not an extra hazard to them. Oh BROTHER! Who would think getting insurance for a property in trust would be so hard! I know other people on here have done this. Any advice would be appreciated. I've called the 2 main insurance companies I use and several insurance brokers with no luck.
There also seems to be an issue because I'm in CA and the property is in GA and won't write the policy because I don't live in the state. Also, some of them are saying the property is just outside the official city borders so that would increase the insurance by ANOTHER $1000. (WHATTT???)
Any insurance advice would be appreciated!
Insurance is placed on the property address not the trust. Your insurance should name you as the beneficiary not the trust. This is why you are not getting insurance for the property. Insurance companies can only pay out to a person or individual representative of a company or trust, not the trust.
however, when I actually do that it is not working. That's why I was getting quotes for the property under our individual names. But when I tell them its held by a trust everything changes.
On another note, they're having a problem with me living out of state too. Its confusing. I have the same problem (out of state) with my NC home as far as being out of state. It costs me BIG time!
This is the first trust I'm doing and wanted to put all my properties under trust, but it sounds like its going to cost me a lot in insurance.
tell me that millions of people around the US are paying 2k a year for homeowners insurance because the home is in 123 family trust. Make it easy. Put the insurance in your name and leave it at that. The insurance company just needs to know whether the house is a rental, vaction home or your primary. I wouldn't tell them that you are putting the house in a trust. You will still be allowed asset protection because on record your name will not appear. You would have to have your insurance carrier public knowledge (which it is not) before someone could go after you. Sometimes less information is better.
but doesn't the mortgage company usually require it? That is what I've learned, but maybe I've been steered wrong? I did research just leaving it in the seller's name and adding me as a loss payee, however, he doesn't have the right insurance on the house; he has a regular homeowner's policy he never switched to a landlord's policy when he moved out of state 2 years ago. That looks like the option that will be easiest to take though.
I took the property subject to, actually have had it since the 1st of September and have been paying the mortgage and managing the tenant, but we were waiting a while to record the trust since it was listed with a realtor and didn't want to raise flags, and for a couple of other reasons to do with the seller's busy schedule. But of all the problems, I never expected insurance to be one of them.
Tammy,
The property that I bought with my 401K is in a trust, and at one time my family home was in a trust (I need to put it back in one of these days). I didn't have an issue with either.
... Verses: 35 "but those who hope in the Lord will renew their strength. They will soar on wings like eagles; They will run and not grow weary, They will walk and not be faint." Isaiah 40:31 ...
Did you just leave it in your name? That is good news to hear! Did you let them know it was held in a trust? Did you use the insurance company you referred me to in the other post? Its been pretty stressful, and I would love to just get a quote and NOT tell them its going in a trust, but I don't want the mortgage company contacting the insurance and then it gets voided out. Then I'm in big trouble! Thanks both of you!
when you do the trust use the current address or homeowner's last name as the trust and you won't raise any red flags. Example... Joe Smith... Smith Trust or 123 Main Street Trust.