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TI101

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  1. I have to point out this is incorrect, and your property insurance is not valid if you have not informed the insurer that it is in trust-as it is a material fact they should be told about before the contract of insurance was taken out. Many insurers will repudiate any claims on this basis and cancel your insurance. Secondly, the financial interest must be the policyholder...in this case the Trust is the owner of the property and therefore the financial interest. The policy must therefore be written in the name of the trust and the trustees noted as joint proposers for data protection or for notification of the executor upon them being deceased. This issue with property in Trust is that the trust and the trustee are separate legal entities and if the worst happened and the house was burnt down the money would be paid to the owner -the Trust and not the policyholder or lifetime resident so this needs to be very clear. There are very few insurers who actually insure this business as it is very time consuming and doesn't fit any of their electronic systems, so needs to be manually written as a contract. This is time consuming and therefore high administration costs, which means high premiums or no premiums at all offered as it doesn't justify value for money for the insurer to type it all up. However, this makes it niche so there are a few brokers who do work in this area as a very traditional style of brokerage and prepared to do quirky more complex risks.
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