You can’t insure it if you don’t own it!

By: Sarann L Fisher, Liberty Insurance Agency
Published: October 10, 2022
Phone: 412-860-6560

Sounds logical – right? Well, you’d be surprised! Many people think that if a family member owns something, that “thing” (car, house, whatever) can be insured by the family or parents or children.


You must have an insurable interest in the “thing” to be insured (Otherwise people could insure other people’s “stuff” and cause damage to that item and collect $$$!). Your (not your kid, not your parents) name must appear on the
deed or title.

I often hear people say I put my son or daughter’s car on my policy because we’re family and they live here. Doesn’t matter! If the car is titled to the son or daughter, then the son/daughter must insure it on an insurance policy in THEIR
name (not the parents).

Or someone passes away and the house transfers to a child (or anyone else) and that person leaves the homeowner insurance in the deceased person’s name…again, NO, NO, NO! If the name on the deed is different than the name of the policy holder, there is NO insurance so basically, it’s a waste of money since claims would be denied (and after all, that’s the whole point of insurance –

Another popular trend is putting your home in a Trust – which transfers the deed to the Trust – now the Trust owns the home – NOT you. This can be addressed simply by adding the name of the Trust to your homeowner policy.

The above may sound extreme, and if there was a minor loss, the insurance company wouldn’t notice the owner. But if you have a major loss (fire, car totaled, lawsuit for damage or injury), the insurance company would see you don’t own the house, car etc., and deny the claim! Then you could be out THOUSANDS of dollars!