I have my insurance company name the loss payable as the vesteed grantee if I own the property free and clear (XXX, Trustee of the Bumptybump Trust, u/t/d March 20, 2008).
However, if I have acquired the property subject to a mortgage that I don’t want to tip off the lender, I may just have the original owner listed, then name my THT as if a additional lender. You could also go the extra step of recording a “Protective” loan to your THT to cover all basis should a catastrophic event occur and you would make a claim for the insurance proceeds, as second lienholder, over the exisiting first mortgage, in order to bypass the issue with the “old” owner as primary insured.
If I purchased a home in my name and then immediately transfer title to the land trust, do I just add the land trust as an additionally insured on the personal insurance policy?
Or do I also add the trustee to make sure they recognize the trustee in the event there is a claim?
Can I expect any hiccups with the insurance agency?
I have found that different companies have different policies / approaches to the subject. Mine used to simply have me add the Trustee ATIMA in the situation you cited.
Frankly, on subj 2’s (which Rick referenced), if you are really spooked about due on sale, get a 2nd insurance policy, and leave the original one in place, as is. (I use some language in subj 2’s which allows me to deal with insurance claims and payments now, but a 2nd policy is an easy way to go.)
Carol