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| *Loan,banking and credit>>>homeowner insurance |
If I have a Life Estate in a home can I get Homeowners Insurance.? |
I am making the house payments and keeping up the house but the Insurance Company says I am only a renter and can not be insured as the owner. The Trustee says I must pay for the insurance even though I would not be covered. seems not Source(s): http://www.insurance-assurance.com/... OK, if you were the trustee, you'd be able to do this with a homeowners policy, but you're not. The trustee is being stupid to make the tenant carry the insurance, print this out and show it to him. Then tell him to ask his agent if he agrees. To insure the house, there needs to be a "dwelling fire" policy on the building, in the name of the owner (estate of jp smith or whatever). It would cover the building and any contents belonging to the estate, and should name the trustee as additional insured for liability. You ARE the tenant. So YOU should buy a renters policy, sometimes called tenant homeowners, covering YOUR stuff and YOUR liability - as the other liabiltiy won't cover you!! Now, why is it stupid for the trustee to make the tenant carry the coverage? For the following reasons: 1. The trustee has no control over coverage types & deductibles 2. If the tenant defaults on payment, how will the trustee ever know? 3. If the tenant substantially changes coverage, how would the trustee ever know? 4. If the tenant covers the place, the trustee's liability interest is not covered. So . . .the mailman delivers the mail, and slips on the porch and breaks his back. The trustee is sued, for failure to maintain the premises that HE is trustee of . .. who pays for his defense costs & judgement? When you say you have "Life Estate" in a home, do you mean you have Life Tenancy Rights (technically you no longer own the home, but you are allowed to live there until your death)? If this is the case, I have written many homeowner policies this way. You should be the Named Insured on a standard Homeowner Policy in this manner: "Mary Smith, as Life Tenant." The Trustee should be named as an "Additional Insured," with his or her address printed underneath their name. They will get a copy of any renewals, endorsements, cancellation & reinstatement notices. As an "Additional Insured," they will be named on any claim check (along with your name) for covered losses to the dwelling and other structures. They will also be insured under the Liability portion of the policy. (If someone sues...for example, for a trip & fall injury which occurred on your sidewalk or stairs). As the Named Insured on a Homeowner policy, you would be entitled to all of the coverages, which makes sense since you would be the primary person handling any necessary repairs in the event of a claim. You would also be entitled to the Personal Property coverage included on the Homeowner Policy. (This covers your furniture, clothing, and other contents of your home.) As the Additional Insured, the Trustee WOULD NOT be covered for Personal Property, since they do not reside in the home. Having the policy written this way would provide more comprehensive coverage than a Dwelling Fire + Tenant Policy. Keep in mind, some insurance companies will agree to this and others won't. You may have to produce copies of the legal documents which provide evidence of your Life Tenancy rights. This situation is becoming more & more common as people live longer. Many elderly folks are transferring ownership of their homes to their adult children and assigning themselves Life Tenancy rights; this way when the parents pass, their children aren't burdened with a tax liability. If you discuss your situation in detail with an experienced independent insurance agent, they should be able to find a solution for you. I was a licensed insurance agent for 15 years. |
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