Home Equity Is A Target For A Lawsuit

8 Jun 2022 · 1 min

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In this advisory video, Jerry Taylor warns homeowners who have built substantial equity that their asset may be vulnerable to lawsuits despite having auto, homeowners, and umbrella insurance. He explains that many common liability situations—such as a teen’s drug‑related accident, texting‑while‑driving crashes, or injuries to a tenant in a rental property—often result in insurance companies denying claims, leaving the homeowner personally liable. To truly protect the home’s equity, Taylor recommends establishing a domestic asset protection trust or an irrevocable trust, which can shield the asset from creditor claims. He concludes with a call to follow his channel and contact him for professional assistance.

Chapters

If you've built up considerable equity in your home, you need to consider the fact that you may be setting yourself up for a lawsuit. For many people, the equity in their home is the biggest asset they will have. So to protect that asset, most people get auto insurance, homeowners insurance, big umbrella policies, right? And all of that insurance lulls you into a sense of security that your home is protected. Unfortunately, that is often not the case. Consider these situations where your insurance will not help you. Your teenager gets into a serious accident where there's drugs and alcohol involved. Your insurance company denies the claim. You had an accident where you were texting and driving. In many states, that's criminal conduct. A rental property tenant on a home in your name gets injured. And on and on. And keep in mind, the first thing an insurance company is going to try to do is deny your claim. A domestic asset protection trust or an irrevocable trust will provide you solid protection. Follow this channel and contact me if you're interested.