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Bespoke Insurance Properties in Trust

02 September 2020

A trust is a way of managing assets and there are a number of reasons why these are set up. When it comes to planning for the future, some people take the decision to place their property in trust.

However, a few years ago it became clear to us that many of our prospective clients were unaware of the insurance implications in performing this action. In some cases, they were not appropriately insured.


A Bespoke Policy


Knowing this problem exists, we decided to find a solution to it. This led us to work in collaboration with a leading law firm and insurer to create our bespoke Properties in Trust product, which is exclusive to Bruce Stevenson's Property Team. The policy provides accidental damage and buildings cover at £1m as standard, as well as the ability to accommodate tenanted, settlor occupied and vacant properties all under one roof.


cottage property home in edinburgh new town


Abrupt Cancellation


This product has allowed us to satisfy several clients who had previously found themselves at a loose end with their insurance policy. A new client of ours experienced a particularly stressful time with their previous household insurer. Upon making a new claim, they advised their insurer that the property had in fact been placed in trust eight months before.

Despite a ten-year relationship, the insurer’s reluctance to deal with trusts was so overwhelming, they cancelled the policy and backdated cancellation to when the property went in trust, and within an instant the client was uninsured. On top of the disappointment of a rejected claim, the client was also left searching for an alternative policy at the worst possible time – Friday afternoon!

Fortunately, the client found our website and give us a call. Within 20 minutes of speaking to us, the client accepted our quote, the property was again insured, and the necessary policy documents emailed out to them.


child and family playing happily in a family home garden


Legal Implications


You could argue that the abrupt way the previous insurer cancelled the policy was excessive. Yet, it demonstrates the unwillingness and inability of some insurers to accommodate properties in trust. A common issue is the legal ownership transferring from the individual to the trust. This is referred to as a change in ‘insurable interest’ and it’s crucial this is reflected in the insurance policy. If not, there are potentially serious consequences in the event of a claim.

At Bruce Stevenson, one of our core values is Exceptional Customer Experience. To maintain our high standards, we felt it was necessary to create a specialist team to manage our Properties in Trust product from which a dedicated account handler is assigned to every client. From new quotes to renewals, we handle every aspect of the customer journey.


Get in Touch


So, whether you are looking to put your own property in trust or are a law firm looking to offer your clients a safe and easy solution, we would be more than happy to discuss further. You can reach our Property team here.


Rachael Holzberger, Property Account Handler, Bruce Stevenson

Rachael Holzberger

Property Account Handler

Contact Us