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Liability Coverage Question

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FBN2007

Member
What is the name of your state (only U.S. law)? MA

I am trustee of a family trust that holds title to a single family home. My brother and I are beneficiaries of the trust. My brother lives there with his girlfriend. The house is insured with a standard home owner policy with the insured being the trust and my brother as an additional insured. There is 500K of personal liability coverage on the policy. I am concerned if the girlfriend had an accident on the property and filed a claim or lawsuit against the trust or me as trustee. Will the policy cover such a situation? She is not a tenant since there is no lease in place.

Can the trustee of a trust that owns a home ask a non beneficiary (the girlfriend) of the trust who lives in the home to sign a waiver that releases the trust or trustee from liability arising from a slip and fall or any other incident related to occupying the house as a condition of that occupancy.
 


LdiJ

Senior Member
What is the name of your state (only U.S. law)? MA

I am trustee of a family trust that holds title to a single family home. My brother and I are beneficiaries of the trust. My brother lives there with his girlfriend. The house is insured with a standard home owner policy with the insured being the trust and my brother as an additional insured. There is 500K of personal liability coverage on the policy. I am concerned if the girlfriend had an accident on the property and filed a claim or lawsuit against the trust or me as trustee. Will the policy cover such a situation? She is not a tenant since there is no lease in place.

Can the trustee of a trust that owns a home ask a non beneficiary (the girlfriend) of the trust who lives in the home to sign a waiver that releases the trust or trustee from liability arising from a slip and fall or any other incident related to occupying the house as a condition of that occupancy.
Yes, the homeowners insurance policy would cover liability for injuries to a guest or a resident even if there was no lease.
 

Zigner

Senior Member, Non-Attorney
For the record - If your brother tries to kick her out when she doesn't want to leave, you had better believe that she's going to scream from every corner that she's a tenant, and she'd be right.
 

adjusterjack

Senior Member
Yes, the homeowners insurance policy would cover liability for injuries to a guest or a resident even if there was no lease.
To qualify that a bit, the liability coverage could pay if the homeowner was negligent and defend if he wasn't.
 

FBN2007

Member
For the record - If your brother tries to kick her out when she doesn't want to leave, you had better believe that she's going to scream from every corner that she's a tenant, and she'd be right.
Since she is a tenant in the eyes of the law, should I have a lease drawn up even if it is for a minimal amount just in case I need to go to court to have her evicted if the need ever arose?
 

Zigner

Senior Member, Non-Attorney
Since she is a tenant in the eyes of the law, should I have a lease drawn up even if it is for a minimal amount just in case I need to go to court to have her evicted if the need ever arose?
A written lease is never a requirement of tenancy. In other words, one can be a tenant without a written lease.

Is there a lease in place for your brother?


ETA: A tenant can be evicted even in the absence of a written lease/rental agreement. In fact, if the need arises, it might be easier to end her tenancy without a written agreement.
 

FBN2007

Member
A written lease is never a requirement of tenancy. In other words, one can be a tenant without a written lease.

Is there a lease in place for your brother?


ETA: A tenant can be evicted even in the absence of a written lease/rental agreement. In fact, if the need arises, it might be easier to end her tenancy without a written agreement.
How would the absence of a lease be easier to evict? No lease in place for brother.
 

Zigner

Senior Member, Non-Attorney
How would the absence of a lease be easier to evict? No lease in place for brother.
Because, generally, a lease would mean that there is some "term" involved (ie: 1 year, 2 years, etc.) Of course, you may have been referring to a month-to-month lease, but I doubt that. With a term lease, you would have to have cause to end the lease early (non payment of rent, violation of some rule [that can't be corrected, etc.]) With a month-to-month, all you have to do is give proper notice that you wish to terminate the tenancy.
 

FBN2007

Member
Because, generally, a lease would mean that there is some "term" involved (ie: 1 year, 2 years, etc.) Of course, you may have been referring to a month-to-month lease, but I doubt that. With a term lease, you would have to have cause to end the lease early (non payment of rent, violation of some rule [that can't be corrected, etc.]) With a month-to-month, all you have to do is give proper notice that you wish to terminate the tenancy.
The month to month lease sounds like a good solution. Now that I have confirmed that the homeowner's insurance will protect me from any "slip and fall" or other claim, the month to month lease will be useful in case my brother and her aren't getting along in the future and he wants her to leave. Thanks
 

Zigner

Senior Member, Non-Attorney
The month to month lease sounds like a good solution. Now that I have confirmed that the homeowner's insurance will protect me from any "slip and fall" or other claim, the month to month lease will be useful in case my brother and her aren't getting along in the future and he wants her to leave. Thanks
By default, any lease she has is "month to month" - you will need to give 30 days notice to terminate tenancy without cause. Not legal advice, but do you really want to rock the boat? You're in no better (and no worse) of a position. If you are really concerned, then I would suggest that you speak to a local attorney who specializes in landlord/tenant law.
 

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