Lady Bird Deeds

How does a Florida Lady Bird Deed affect insurance?

June 20, 2023
How does a Florida Lady Bird Deed affect insurance?

As with all property transactions, it is important to consider the importance of the various types of insurance involved with real estate before and after executing a Florida Lady Bird deed.

“You should consider the insurance implications of any real estate transaction.”

Homeowners Insurance:

When executing a Lady Bird Deed, the property owner retains the right to live on and control the property during their lifetime. From an insurance perspective, this means that the property owner will likely remain the primary insured party on the homeowners insurance policy. It's essential to review the policy terms and conditions to ensure that the Lady Bird Deed does not conflict with any provisions or requirements of the insurance coverage. Informing your insurance provider about the deed is advisable to maintain transparency and ensure continued coverage.

Title Insurance:

Title insurance protects property owners and lenders against any potential issues or claims that may arise regarding the property's title. A Lady Bird Deed can impact title insurance coverage because it transfers ownership to the designated beneficiaries upon the property owner's death without going through probate. While the Lady Bird Deed is recognized in Florida, it's important to consult with a title insurance professional to ensure that the transfer of ownership is properly recorded and that title insurance remains intact for the beneficiaries.

Life Insurance:

A Lady Bird Deed typically does not directly affect life insurance policies, as they operate independently of property ownership. Life insurance proceeds are typically paid directly to the named beneficiaries upon the policyholder's death. However, it's crucial to review your life insurance policy to ensure that the designated beneficiaries align with your intentions in the Lady Bird Deed. Regularly reviewing and updating your beneficiary designations will help ensure that your life insurance benefits are distributed according to your wishes.

Liability Insurance:

Liability insurance protects property owners from claims or lawsuits arising from accidents or injuries that occur on their property. With a Lady Bird Deed, the property owner retains control and use of the property during their lifetime, so they would still need to maintain liability insurance coverage. It's important to notify your insurance provider about the Lady Bird Deed and confirm that your liability insurance policy remains in effect and adequately protects you during your lifetime.

Long-Term Care Insurance:

Long-term care insurance is designed to cover the costs associated with long-term care services, such as nursing home care or in-home assistance. A Lady Bird Deed typically does not impact long-term care insurance coverage, as it focuses on property ownership and transfer rather than personal care provisions. However, it's still advisable to review your long-term care insurance policy to ensure that any changes in property ownership do not affect the terms and conditions of your coverage.


While a Florida Lady Bird Deed offers a convenient way to transfer property upon death, it's crucial to consider its potential impact on insurance coverage. Reviewing your homeowners insurance, title insurance, life insurance, liability insurance, and long-term care insurance policies with the assistance of insurance professionals can help ensure that your coverage remains intact and aligned with your estate planning goals. By proactively addressing insurance considerations, you can effectively protect your assets and provide for your beneficiaries in accordance with your wishes.

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