He who owns it, must be he who insures it
If you took the initiative to create a trust or LLC then you need to be sure that those are listed on your insurance policy. The individual or entity that appears on the deed/title should be the same name on your insurance policy.
Last week you finally decided to take the advice of your lawyer and set up a living trust. Among the many assets you put in the trust for safe keeping, you decided to put your house in the trust. The trust is now the deed holder on your home.
This morning Sue Yu trips on the lawn gnome in front of your house and sustains a life altering elbow injury, losing the use of her left arm. Sue seeks counsel to gain compensation for the pain and suffering she has endured after losing her arm to your lawn gnome. One of the first things Sue's lawyer does is look up to see who owns the property on which the gnome was located in order to determine who to file suit against. The next week you get a letter in the mail advising of the law suit against your living trust.
If your insurance policy does not list the living trust on the policy, then you could be leaving all of the assets of the trust at risk. Luckily, you are insured with Mason Insurance Agency and because you read their blog so you knew to update your policy. The claim was covered and Sue has a brand new arm.