Making Sure Your Title Insurance Covers Your Home in a Trust
If you’re thinking about putting your home into a revocable living trust, you might assume your title insurance will automatically stay in place. But that’s not always the case! To make sure your home is still covered, it’s a good idea to check your policy and take a few simple steps to keep your protection intact.
Why Title Insurance is Important
Title insurance is there to protect you from unexpected legal claims, liens, or disputes over ownership. Even though most title issues pop up within the first few years of owning a home, surprises can happen at any time. That’s why it’s so important to make sure your coverage doesn’t lapse when you transfer your property into a trust.
Check Your Title Insurance Policy
Start by reviewing your title insurance policy. If you bought your home in 1998 or later, there’s a good chance your policy already extends coverage to a living trust. If that’s the case, you’re all set—no extra steps needed!
But if your policy is older or doesn’t have that language, don’t worry. You can still make sure your home stays protected by reaching out to your title insurance company.
How to Keep Your Coverage in Place
If your policy doesn’t automatically extend to your trust, here’s what you can do:
Ask for Written Confirmation – The easiest way to know for sure is to call your title insurance company and ask if your coverage continues after the transfer. If it does, have them send you confirmation in writing.
Get an Endorsement – If your policy doesn’t automatically cover the transfer, you can ask for an endorsement (for CLTA policies, this is usually Form 107.9). This update officially includes your trust in the coverage and typically comes with a small fee.
For commercial properties with ALTA title policies, you may need “expanded coverage” instead of an endorsement—but the goal is the same: making sure your home stays protected.
What Happens If You Skip This Step?
If your title insurance doesn’t extend to your trust and something happens—like a title dispute or an ownership claim—your insurance company could deny coverage. That could mean expensive legal battles and financial headaches down the road.
We always recommend checking with your title company directly. A quick phone call now can save you a lot of trouble later!
Final Thoughts
Making sure your title insurance continues after you transfer your home into a trust is a simple but crucial step in protecting your property. By checking your policy, talking to your title insurance company, and getting an endorsement if needed, you’ll have peace of mind knowing your home is covered.
If you have any questions about trusts or title insurance, don’t hesitate to reach out to us, your trusted estate planning attorneys, or your title insurance provider. A little preparation now can go a long way in keeping your home safe for the future!
