Page 1 - PCN_3_2016
P. 1
Private Client
Practice Group
Newsletter
Volume 1, Issue 1, 2016
NOT SO SMART HOME: ......................................................................................................................................................... Pitfalls of Transferring
Home Ownership
The Unintended Consequences of the IoT
Over the past two decades, an increasing
For those unfamiliar, the promise behind the Internet of Things (IoT) is to number of Americans are transferring personal
enable technology enhanced objects—such as appliances, light switches, ownership of residential property to trusts,
door openers, printers, etc.—with connectivity, thereby allowing them to LLCs, limited liability partnerships (LLPs) and
communicate with homeowners and in many cases each other. Smart home other asset-protection or tax-advantaged
appliances and other gadgets already help consumers perform a number entities. While transferring real property to
of tasks remotely, including changing the thermostat, unlocking doors, an entity can offer a number of benefits, this
adjusting interior and exterior lights, monitoring webcams, and operating strategy can also create significant unintended
home appliances. gaps in insurance coverage.
Meanwhile, a recent article by CNET, “Your smart-home network will be In fact, there are several circumstances in
a mess,” explains that there are a number of daunting challenges that which this strategy could prove risky. As an
homeowners face by leveraging the IoT. In fact, homeowners eager to become example, an entity is a “what” and not a “who”
early adopters may want to consider the unintended consequences that may (or “you,” “your,” or “family member”). Without
arise from digitizing one’s home. a “who,” there is no coverage for an entity on
an unendorsed homeowner’s policy.
The Devil is in the Details
Luckily, Assurex Global knows the questions
While smart light bulbs, home appliances, sprinklers, alarm systems, and door to ask in order to provide solutions for these
locks are widely available and aggressively marketed, having all of these situations.
smart devices communicate with each other is a challenge. For those who
Start with the Right Questions
continued on pg. 3
Provided the entity that owns the property
1 does not conduct any business-related
activities, addressing the following questions
continued on pg. 3
Practice Group
Newsletter
Volume 1, Issue 1, 2016
NOT SO SMART HOME: ......................................................................................................................................................... Pitfalls of Transferring
Home Ownership
The Unintended Consequences of the IoT
Over the past two decades, an increasing
For those unfamiliar, the promise behind the Internet of Things (IoT) is to number of Americans are transferring personal
enable technology enhanced objects—such as appliances, light switches, ownership of residential property to trusts,
door openers, printers, etc.—with connectivity, thereby allowing them to LLCs, limited liability partnerships (LLPs) and
communicate with homeowners and in many cases each other. Smart home other asset-protection or tax-advantaged
appliances and other gadgets already help consumers perform a number entities. While transferring real property to
of tasks remotely, including changing the thermostat, unlocking doors, an entity can offer a number of benefits, this
adjusting interior and exterior lights, monitoring webcams, and operating strategy can also create significant unintended
home appliances. gaps in insurance coverage.
Meanwhile, a recent article by CNET, “Your smart-home network will be In fact, there are several circumstances in
a mess,” explains that there are a number of daunting challenges that which this strategy could prove risky. As an
homeowners face by leveraging the IoT. In fact, homeowners eager to become example, an entity is a “what” and not a “who”
early adopters may want to consider the unintended consequences that may (or “you,” “your,” or “family member”). Without
arise from digitizing one’s home. a “who,” there is no coverage for an entity on
an unendorsed homeowner’s policy.
The Devil is in the Details
Luckily, Assurex Global knows the questions
While smart light bulbs, home appliances, sprinklers, alarm systems, and door to ask in order to provide solutions for these
locks are widely available and aggressively marketed, having all of these situations.
smart devices communicate with each other is a challenge. For those who
Start with the Right Questions
continued on pg. 3
Provided the entity that owns the property
1 does not conduct any business-related
activities, addressing the following questions
continued on pg. 3
