Yes, Kin offers coverage for homes that are owned by a trust. And that’s notable considering most insurers either don’t insure these homes or limit the coverage enough that it can leave homeowners underprotected.
There’s no industry-standard approach to insuring trust-owned properties, so our take was simple: find the solution that benefits homeowners in this unique situation the most. We determined adding the trust as an additional insured is the way to go.
A trust is an arrangement usually used to minimize estate taxes. It allows a third party (the trustee) to hold assets, such as property, on behalf of beneficiaries. Homes are often held in trusts to keep the property from entering probate, which can be a long and drawn-out legal process to settle a deceased person’s estate.
Our approach to covering trust-owned homes is a little different. With Kin:
Residents of the property are the named insureds on the homeowners insurance policy.
Trusts are added as an additional insured.
In other words, residents and the trust get the full benefits of the policy – including worldwide liability coverage. That means you and your family have coverage for bodily injury and property damage accidentally caused to others no matter where the incident happens.
That’s a significant benefit of our coverage compared to other providers. When insurers do offer liability coverage for trust-owned homes, they often limit this essential protection or exclude it altogether.
If an insurer lists the trust as the named insured, the trust typically has coverage for the dwelling, other structures, personal property, and personal liability. However, occupants of the home typically wouldn’t get liability protection because trusts are a legal entity – they don’t have spouses, children, or relatives. That means if your child accidentally hits a baseball through your neighbor’s window, you’d be responsible for paying those damages out of pocket because only the trust has liability coverage.
If the trust is the named insured and not the residents, then personal property is typically only covered while located at the home. That means if you lose your luggage while traveling, you wouldn’t have coverage to replace it.
We want to make sure the people who live in the home get the appropriate protection for their belongings and activities. That’s why we write trust-owned homes the way we do.
Questions about insuring your home? Give us a call at 855-717-0022.
These are some things to keep in mind if you’re comparing Kin’s coverage to Citizens.
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