The recent devastation caused by the Palisades, Eaton, and other wildfires in Los Angeles and Ventura counties has left many homeowners grappling with the aftermath of destruction and the realities of rebuilding.

A question that often arises in the context of estate planning is whether your revocable living trust should be named on your homeowner’s and earthquake insurance policies.

1. Inform Your Insurance Broker

If you’ve placed your home in a revocable living trust—a common step in estate planning—it’s important to inform your insurance broker. While most homeowner policies remain valid as long as the grantor (you) is listed as the named insured, adding your trust as an additional insured can provide peace of mind.

• Why This Matters: Insurance claims can be complicated. Therefore, ensuring that your trust is properly listed could prevent unnecessary delays or disputes during what is already a stressful time.

2. How a Revocable Trust Affects Ownership

A revocable living trust allows you to maintain control over your property while offering significant estate planning benefits. For insurance purposes, most carriers treat homes held in a revocable trust similarly to those owned outright by individuals, as long as the home is used according to the policy (e.g., as a primary residence or rental).

3. Reviewing Your Policy Language

Not all insurance policies are created equal. Some may require specific endorsements or riders for homes held in trusts, while others may already include broad language that covers such arrangements.

• Action Needed: Sit down with your broker to review your policy carefully. It’s better to address potential gaps now rather than during a claim.

4. Wildfire and Earthquake Coverage Concerns

California homeowners are no strangers to natural disasters—from wildfires to earthquakes. The recent fires have highlighted how quickly lives can be disrupted. Unfortunately, many major carriers are no longer writing policies in California. Further, wildfire mitigation is going to become a key issue in securing coverage for your property, so it’s important that you educate yourselves and make preparations well before it’s time to renew your policies.

• Why This Matters Now: Keeping your policies updated—even if listing your trust isn’t explicitly required—can help to ensure smoother claims processing should you suffer a loss.

5. Seek Professional Advice When in Doubt

If you’re unsure about how best to structure your insurance policies or if you own multiple properties, consulting with an experienced insurance professional is essential.

• Tailored Guidance: Every situation is unique, so professional advice can help you navigate complex scenarios, avoid costly mistakes, and ensure that you have adequate coverage.

In Conclusion

The recent fires have been a sobering reminder of how quickly life can change for homeowners. If you’ve placed your home into a revocable living trust—or are considering doing so—now is the time to review your homeowner’s and earthquake insurance policies. Informing your broker, reviewing policy language, and seeking professional advice are small but crucial steps that can make all the difference when it comes to protecting what matters most: your home and family. As we rebuild together as a community, let’s ensure we’re prepared for whatever challenges lie ahead.

If you have questions about trusts, estate planning, or protecting your property through insurance, don’t hesitate to reach out—we’re here to help guide you every step of the way.

Please note: This blog post is for informational purposes only and does not constitute legal advice or create an attorney-client relationship. Consult with a qualified attorney at Pederson Law Offices for advice on your specific circumstances.