A vacation home that my parents owned is now in a trust. Who will insure a property like this?
May 12th, 2011 | by admin |I’ve tried several agencies and I’m having trouble finding insurance for a non-primary residence that is in a trust shared by me and my two brothers. The property is in Massachusetts.
It’s a summer home for personal use. It is not inhabited full time by anyone.
It’s not owned by them any more. It’s owned by a trust. That’s why you can’t put a "homeowners" insurance policy on it.
You have two options:
You can get a high risk homeowners insurance policy from Foremost Insurance, which will write a seasonal property policy in the name of a trust. The coverage isn’t as good, and it costs a lot more.
You can buy a commercial property policy. It will cost a WAY lot more.
That’s it. Those are your two choices.
If you’re looking for a homeowners price, on a seasonal risk, your expectations are unrealistic.
No standard carrier will write a UNSUPPORTED seasonal property. That means, they’d need to write your PRIMARY homeowners policy as well. Additionally, you can’t get a standard PERSONAL LINES policy in the name of a trust.
2 Responses to “A vacation home that my parents owned is now in a trust. Who will insure a property like this?”
By car253 on May 12, 2011 | Reply
Any company will insure it as a Rental Dwelling Policy (RDP). The company just wants to make sure the home is not vacant. Someone must live there, either a family member or someone renting.
It is a bad idea to have no one living in the home. Will be tough to find insurance without someone living there. Why not have a caretaker live there when no one else is and give free rent in exchange for them taking care of the property and keeping an eye on things.
Insurance companies do not like vacant properties because they are vandalized. Find a caretaker or a family member to stay there. Problem solved!!
References :
By mbrcatz on May 12, 2011 | Reply
It’s not owned by them any more. It’s owned by a trust. That’s why you can’t put a "homeowners" insurance policy on it.
You have two options:
You can get a high risk homeowners insurance policy from Foremost Insurance, which will write a seasonal property policy in the name of a trust. The coverage isn’t as good, and it costs a lot more.
You can buy a commercial property policy. It will cost a WAY lot more.
That’s it. Those are your two choices.
If you’re looking for a homeowners price, on a seasonal risk, your expectations are unrealistic.
No standard carrier will write a UNSUPPORTED seasonal property. That means, they’d need to write your PRIMARY homeowners policy as well. Additionally, you can’t get a standard PERSONAL LINES policy in the name of a trust.
References :
Former MA licensed agent