Understanding Types of Ownership and Insurance Coverage Options

Aug 23, 2022

Trusts, estates, LLCs, and family limited partnerships are just some types of ownership used for properties and assets. They’re gradually becoming more common because they’re a good option for wealth management and the transfer of legal ownership for properties such as rental properties, personal homes, and vacation homes. 

The benefits of these ownership types extend beyond wealth management; they can also help when it comes to liability purposes. In this blog, we’ll break down the various types of property ownership and how it relates to insurance liability and coverage.


A trust is a fiduciary arrangement that allows a third party, or trustee, to hold assets such as cash, stocks, property, collectible items, and more on behalf of a beneficiary or beneficiaries. It’s one of the leading legal structures used for transferring assets to heirs and beneficiaries. This ownership type enables the ongoing transfer of assets before and after death. Unlike an estate, trusts can be set up while the grantor is still alive, and living trusts are commonly used to pass down heirlooms, land, and other valuable assets. This type of ownership also allows a property to belong to the family.


Estates are another leading legal structure that includes everything a person owns when they die. Estates exclude jointly owned assets and anything transferred or assigned by the time of death. This type of ownership is temporary and is used solely for the one-time distribution of the deceased’s assets. Once those assets are distributed, the estate no longer exists. However, estates don’t have to be a short-term process; distribution of all assets can sometimes take years. 


A Limited Liability Company (LLC) is a legal entity that offers those involved limited liability protection and tax options. LLCs can also be used for estate planning. They’re filed under public record and offer protection of assets from personal liabilities and creditors. They’re highly effective in asset management related to rental properties, vacation homes, and family businesses. 

Family Limited Partnerships

Partnerships are legal entities created by an agreement between two or more people to operate a business or hold property. The agreement lays out the partners’ rights related to transferring interests and admitting additional partners. A family limited partnership or FLP is a limited partnership where the partners are family members. FLPs are often formed by parents who own rental properties, farms, and other businesses and investment assets that may one day be passed down to their children.

Finding Insurance Coverage for Different Ownership Types

Whether the named insured is a trust, LLC, estate, and/or limited partnership, all should carry Liability insurance in an effort to protect from any bodily injury and/or property damage that may arise on premises. For example, should a guest trip and fall on your client’s property, a Personal or Commercial Liability policy can cover expenses related to that accident. 

When insuring assets under these ownerships, your clients must understand the nuances involved for proper coverage. At Jencap, we specialize in securing coverage for all types of ownership, including estates, trusts, FLPs, and LLCs. We provide the expertise and resources you need to navigate your client’s coverage options. Contact us to learn more.

The Jencap Personal Lines Insurance Team

The Jencap Personal Lines Insurance Team

Jencap’s industry-leading personal lines underwriters specialize in high-valued homeowners, primary and excess flood, hard-to-place homeowners, and everything in between. The Jencap personal lines team is the one-stop shop for all your monoline and packed policy needs, with access to 30+ admitted and non-admitted carrier partners.
commercial lines | ownership | personal lines | property



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