Let’s talk about protecting your home from lawsuits and damage. How do you protect your house, or your personal residence from creditors if somebody sues you or if someone gets hurt on your property?
If you’ve decided that this is the year to buy a home we know that there are a million questions that go into that one important decision. The one that may not be first in mind as you ponder ranch or two-story near the city in the suburbs or beachfront is the matter of homeowners insurance. Protecting that beautiful new home of yours is extremely important and definitely essential for all homeowners not to mention it may save you plenty of headaches should something happen down the road.
If you have a mortgage reverse mortgage or any lien holder they will require you to have an active home insurance policy on your home. If there is no lien on the home, homeowners insurance is not required. If damage occurred to the home the homeowner would then be responsible for paying any damages. As you can guess, homeowners insurance provides added financial assistance should any covered damage happen to your home, to any additional property, or to your personal belongings.
Be sure to know what is and what is not covered under your homeowner’s insurance policy. Remember, not having homeowners insurance means you will be responsible for paying to repair any damage out of pocket. If you have never reviewed your policy with your insurance agent or if you have made improvements to your home contact us today to review your coverages. This review will ensure you are properly covered.
Comparing coverages is beneficial so that you can be confident in knowing that your home is covered with the best policy for you and your property. With your personal residence you can do two things and sometimes three things number one you can put your home into a land trust for privacy of ownership so that way your name doesn’t appear in the public records when some attorney comes sniffing around for assets to see if they want to accept a contingency fee lawsuit against you.
You don’t assign the land trust to an llc when it’s your personal residence and show you why number two, record an equity stripping lien against your home that is a mortgage or deed of trust to pull the equity out of the property and you can do that for most people who live in states that don’t protect enough of your home equity.
Now number one and two work in ninety nine percent of the cases but in one percent of the cases number three you can later get a third party lender to purchase those liens and put the proceeds into an inaccessible account in an international asset protection trust.