After transferring my investment home into an LLC, who should be programmed as Insured on the home insurance?
So I completed the transfer of my investment homes into an LLC. I was originally nominated as the INSURED on my home insurance. I currently have a tenant occupied rental policy as it is a rental/investment property.
1. Should the LLC be tabled as the NAMED INSURED now?
2. Or should I still be listed as the NAMED INSURED and term the LLC as the additional NAMED INSURED?
My insurance agent said that he only does individual insurance and thought that #2 would work.
You just asked this.
The named insured on the policy requests to match the legal owner's label, on the deed.
Because it's a corporation, the corporation must be the named insured on the dwelling and liability coverage.
Most feasible, it's not going to be eligible for a PERSONAL insurance policy, as it's owned by a corporation.
The LLC needs to be listed as a name insured. If you do #2, you're going to have problems, as YOU don't have straightforward insurable interest.
I hate it when this comes up. Try #1 first. It's the best way to do it. If that doesn't work. Change agents to one who will do it right.
If you won't do that - do #2, but net sure you get it writing that your current agent says it'll work.
I've done #2 in the past, but only after talking it over near the underwriter to confirm coverage.
"> Not an insurance expert, but your LLC is close to a person (an immortal person). He owns this investment property. I think the LLC, the homeowner, should be on the insurance. Just for liability reason, thats why you have the LLC in overnight case unexpected things occur. I hold never heard of someone having their moniker on the insurance of someone else's house. That just sounds messed up to me.
Go with the LLC as the name insured.
Oh my......merely the LLC can be the named insured if the deed say "LLC" . You, individually, have no interest in the property, so you cannot be name as an additional named insured. That would conquer the purpose of an LLC.
There are many carriers (especially surrounded by CA) that will write a homeownerss policy under an LLC....talk to and INDEPENDENT agent. They can aid! Stay away from captive agents (Farmers, State Farm, Allstate). Their agents can only market their produts where and independent agent represents many carrier themselves or through wholesalers.
Good Luck! Source(s): 30+ years in the Insurance Industry
Related Questions:
1. Should the LLC be tabled as the NAMED INSURED now?
2. Or should I still be listed as the NAMED INSURED and term the LLC as the additional NAMED INSURED?
My insurance agent said that he only does individual insurance and thought that #2 would work.
You just asked this.
The named insured on the policy requests to match the legal owner's label, on the deed.
Because it's a corporation, the corporation must be the named insured on the dwelling and liability coverage.
Most feasible, it's not going to be eligible for a PERSONAL insurance policy, as it's owned by a corporation.
The LLC needs to be listed as a name insured. If you do #2, you're going to have problems, as YOU don't have straightforward insurable interest.
I hate it when this comes up. Try #1 first. It's the best way to do it. If that doesn't work. Change agents to one who will do it right.
If you won't do that - do #2, but net sure you get it writing that your current agent says it'll work.
I've done #2 in the past, but only after talking it over near the underwriter to confirm coverage.
"> Not an insurance expert, but your LLC is close to a person (an immortal person). He owns this investment property. I think the LLC, the homeowner, should be on the insurance. Just for liability reason, thats why you have the LLC in overnight case unexpected things occur. I hold never heard of someone having their moniker on the insurance of someone else's house. That just sounds messed up to me.
Go with the LLC as the name insured.
Oh my......merely the LLC can be the named insured if the deed say "LLC" . You, individually, have no interest in the property, so you cannot be name as an additional named insured. That would conquer the purpose of an LLC.
There are many carriers (especially surrounded by CA) that will write a homeownerss policy under an LLC....talk to and INDEPENDENT agent. They can aid! Stay away from captive agents (Farmers, State Farm, Allstate). Their agents can only market their produts where and independent agent represents many carrier themselves or through wholesalers.
Good Luck! Source(s): 30+ years in the Insurance Industry
Related Questions: