Whose Name Should Be on Insurance Policy for House if Parent Put Child's Name on the Deed?

Attorney Thomas B. Burton answers a reader question about whose name should be on the homeowner's insurance policy for a house when a parent puts their child's name on the deed.



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Transcript of Video: Whose Name Should Be on Insurance Policy for House if Parent Put Children's Name on the Deed?


Today's question is from New London

Wisconsin and it's the following if a

parent put his kid's name on the deed of

his house should he carry the insurance

or does it have to be in the name of the

children

my dad deeded the house to my brother

and I he was checking into the price of

the house insurance and his agent said

that the insurance had to be in the kids

name and he had to have renter's insurance

so good question here in general I would

talk to your agent and see what the

policy says but the name on the title

of the deed whoever currently owns the home

is likely the person who needs to be the

named insured if your dad remains on the

title it's possible he could be named as

insured as well but if it's just you two

children on the home then it's likely

that you're going to need to be the named

insured because if something happens

such as a fire you are the actual legal

owners who would need to be made whole

from the insurance company so I would

double check this with the agent but in

general for my other listeners watching

this is why I warn against

transferring a home during life to your

children it can have other legal

implications once the title is in their

name and suddenly managing the property

isn't the same as when you owned it

yourself for this reason I like to use

trust planning to pass a home to the

children so that you can remain living

there and the trust can be the named

insured on the insurance policy during

your life then after you're gone the

trust can remain the insured until your

children sell the home or transfer it to

one of them or whatever you say is to

happen in the trust you always want your

insurance policy on the home to match

the actual legal title the deed saying

who actually owns the home because in

the event you have a fire or something

terrible you want to make sure you're

able to recover against that policy so

great question and thank you for asking!


© 2019 Law Office of Thomas B. Burton. All Rights Reserved.

Transcript and captions provided for ease of access for the hearing impaired.

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