Posted by William Bronchick on August 29, 2004 at 21:20:17:
This is someone ELSE’s property, so that makes it more complicated.
Generally a power of atty from the former owner will work, otherwise
you will need to cancel the existing policy and get a new one.
trusts and insurance - Posted by Konrad
Posted by Konrad on August 28, 2004 at 16:36:26:
I am trying to figure out the proper way to insure properties in a trust. There is a lot of conflicting information out there about the topic and many insurance brokers have no clue, as to how the issue ought to be handled.
We have number of properties in a trust where the beneficial interest has been assigned to a LLC. The Trustee is also one of the members of the LLC (I do understand that this scenario nulifies some of the asset protection benefits by having trustee being a member of the LLC that is also holding beneficial interest in the property). Still, according to what I’ve learned it helps coping with the Due On Sale clause and with banks in general. Or does it? Please comment if I am mistaken.
In any case, my primary concern is for the way the names should appear on the insurance policy.
So far, i’ve been instructing our insurance agents to list them as:
INSURED:
JOHN DOE, TRUSTEE OF XYZ Trust
ADDITIONAL INSURED:
ABC, LLC (LLC with 100% beneficial interest in the property)
Is this correct or do we need to adjust our policies? Our properties are located in CT.
Thank you.
Konrad
Re: trusts and insurance - Posted by William Bronchick
Posted by William Bronchick on August 28, 2004 at 21:07:32:
This is generally correct. The primary insured should be the titled
owner (e.g., “John Doe trustee of XYZ Trust” or “XYZ Trust”). The
trustee and beneficiary should be named as “additional insured” for
liability.
Re: trusts and insurance - Posted by Konrad
Posted by Konrad on August 29, 2004 at 19:02:11:
Thank you William. Some insurance companies give me a hard time when I change the information. They insist on talking to the owners, even though I offer to fax a Trustee Authorization signed by the sellers. Any suggestions?