Does Putting Your Home in a Revocable Trust Affect Your Homeowners Insurance?

Estate planning attorneys routinely recommend deeding a home into a revocable living trust. It avoids probate, simplifies the transfer of assets to heirs, and keeps things private. Lately, because of misinformation on the internet, many have heard that putting your house into your revocable trust voids your homeowners insurance. This is not true!

The short answer under Nebraska law and Eighth Circuit precedent is that the transfer alone should not defeat your coverage. Your insurable interest survives. To put your mind at ease, you can very easily add your trust as an “additional insured” on the policy.

Your Insurable Interest Does Not Disappear

Nebraska defines an insurable interest based on your relationship to the property and your exposure to loss — not on who holds legal title. The statute covers "every interest in property or any relation thereto … of such a nature that a contemplated peril might directly damnify the insured." Neb. Rev. Stat. § 44-103.

When you deed your home to your own revocable trust, you remain the equitable owner. The Nebraska Supreme Court has held that an owner who conveys real estate to a trust "remains the equitable owner of the property" even after the deed is transferred. First National Bank in Mitchell v. Daggett, 242 Neb. 734, 497 N.W.2d 358 (1993). And because a revocable trust remains under the settlor's control — you can revoke it, modify it, and pull the property back out at any time — you are still the real party in interest.

Nebraska courts have long held that a change in title does not void an insurance policy unless the insured conveys their entire interest. Where the insured retains an insurable interest at the time of loss, coverage survives. Wriedt v. Beckenhauer, 183 Neb. 311, 159 N.W.2d 822 (1968). A couple that deeds their home to their own revocable trust and continues living there has not conveyed away their entire interest — they remain beneficial owners and occupants.

The Eighth Circuit agrees. In Beckon, Inc. v. AMCO Insurance Co., 616 F.3d 812 (8th Cir. 2010), the court held that "the lack of title is immaterial" to insurable interest — what matters is whether you face a real possibility of loss from the property's destruction. The court also placed a meaningful limit on insurers: a company cannot collect premiums for years and then argue after a loss that the insured's interest was worth less than the coverage it wrote.

A federal court recently applied this reasoning to facts nearly identical to what Nebraska homeowners face: a married couple deeded their home to their joint revocable trust, continued living there, and remained the only named insureds on the policy. The court held as a matter of law that the couple retained an insurable interest after the transfer. American Economy Insurance Co. v. Lower Valley Energy, Inc., No. 24-CV-155-SWS (D. Wyo. Dec. 29, 2025) (applying Wyoming law; persuasive authority).

The Simple Fix

Don’t lose sleep over this issue. However, if you have a revocable trust, take this as an opportunity to reach out to your insurance agent and ask them to add your trust as an additional insured. You will likely need to provide them a copy of the trust document. This isn't urgent and isn't dire, but it should help speed up a claim if you ever have a loss and your house is in your trust.

Conclusion

Don’t take legal advice from the internet. If you have questions about trusts or estate planning, call the experts. The attorneys at Carlson & Blakeman have handled many trusts and fielded many questions from clients who have heard incorrect information on the internet. If you want the real answers, give our attorneys a call at (402) 858-0996.