Definitions

Section II Exclusions

Sections I and II Conditions

Umbrella Liability Trust Endorsement Schedule

Umbrella Endorsement Definitions

Umbrella Endorsement Section II and III Coverages

Umbrella Endorsement Section VII General Provisions

Trust Endorsement Schedule

Like many endorsements adding coverage, the homeowners trust endorsement begins with a schedule. It requires the name of the trust, the address of the trust, and the names of trustees, their addresses, and the name of the trust they are part of. Information not shown on the endorsement may be listed on the declarations. It is important to know who the trustees are so that the carrier knows who has access to the property. The provisions of the endorsement apply to those listed on the schedule.

Definitions

 DEFINITIONS

A. The following is added to Definition 5. "Insured":

5. "Insured" means:

d. The Trust, if recognized under applicable state law as a legal entity with the capacity to sue or be sued in a court having jurisdiction and if named in Item 3. in the Schedule as an Insured, but only for the following coverages:

(1) Coverage A – Dwelling and Coverage B – Other Structures; and

(2) Coverage E – Personal Liability and Coverage F – Medical Payments To Others, but only with respect to "bodily injury" or "property damage" arising out of the ownership, maintenance or use of an "insured location" as defined under Definitions, Paragraph B.6.a. of this endorsement.

e. The Trustee(s) named in Item 2. in the Schedule as an Insured but only for the following coverages:

(1) Coverage A – Dwelling and Coverage B – Other Structures; and

(2) Coverage E – Personal Liability and Coverage F – Medical Payments To Others, but only with respect to "bodily injury" or "property damage" arising out of the ownership, maintenance or use of an "insured location" as defined under Definitions, Paragraph B.6.a. of this endorsement.

However, this Paragraph A.5.e. applies only with respect to the Trustee's duties as a Trustee of the Trust named in Item 1. In the Schedule.

B. The following definitions are replaced:

3. "Business" means:

a. A trade, profession or occupation engaged in on a full-time, part-time or occasional basis;

b. "Home-sharing host activities"; or

c. Any other activity engaged in for money or other compensation, except the following:

(1) One or more activities, not described in (2) through (5) below, for which no "insured" receives more than $2,000 in total compensation for the 12 months before the beginning of the policy period;

(2) Volunteer activities for which no money is received other than payment for expenses incurred to perform the activity;

(3) Providing home day care services for which no compensation is received, other than the mutual exchange of such services;

(4) The rendering of home day care services to a relative of an "insured"; or

(5) Activities performed as a Trustee in connection with administering the Trust named in Item 1. in the Schedule of this endorsement.

6. "Insured location" means:

a. The following real property but only if legal title to such property is held in trust with respect to the Trust named in Item 1. in the Schedule:

(1) The "residence premises";

(2) The part of other premises, other structures and grounds used by you as a residence; and

(a) Which is shown in the Declarations;

or

(b) Which is acquired during the policy period for your use as a residence;

(3) Any premises used by you in connection with a premises described in (1) and (2) above;

(4) Vacant land, other than farm land;

(5) Land on which a one-, two-, three- or four-family dwelling is being built as a residence for an "insured"; and

(6) Individual or family cemetery plots or burial vaults of an "insured";

b. Any part of a premises:

(1) Not owned by an "insured"; and

(2) Where an "insured" is temporarily residing;

c. Any part of a premises occasionally rented to an "insured" for other than "business" use;

d. Vacant land, other than farm land, rented to an "insured"; and

e. Land rented to an "insured" on which a one-, two-, three- or four-family dwelling is being built as a residence for an "insured".

 Analysis

When a trust exists and is added to the homeowners policy by this endorsement, the definition of insured is changed to include the trust, as long as the trust is recognized by state law as a legal entity to sue or be sued in a court having jurisdiction, and the trust is listed in the schedule.

 Coverage applies only to Coverage A and B, dwelling and other structures, and coverages E and F, personal liability and medical payments to others. The personal liability and medical payments coverage apples only to bodily injury or property damage that arises out of the ownership, maintenance or use of an "insured location" as defined. The endorsement grants coverage to the trust and trustees only for the property the policy covers. It does not provide coverage for any other property or liability of the listed trust.

 Trustees are treated the same way; they are considered insureds for coverages A and B, and E and F, but only as it relates to the property listed under the trust and their duties as trustees under that trust. There is no coverage for a trustee's personal property or liability for their individual property or individual liability not related to the trust.

 The definition of "business" is the same as that in the homeowners form except that it list activities of a trustee in connection with administering the Trust as an exception to the definition of "business". Activities of a trustee are not considered business activities.

 "Insured location" now indicates that it is the real property but only if legal title is held in the trust with respect to the trust listed in the schedule. The order of the definition is rearranged, but all the elements are present. Vacant land, cemetery plots, and the other types of property listed are the same.

 Section II Exclusions