LLC Bought Properties. How To Insure?
I have purchased a property under LLC. The house is to rehab and sell quickly. Does anyone ever tried to insure those type of properties? And if did trough what company??? Thank's. 
You'll need a Remodeler's Builders Risk Insurance Policy. I got mine through Zurich. You'll need to speak with an agent that can write commercial policies.
just a question how did you manage to buy a property under the LLC name? was it deeded over to the LLC
or is the loan on your name but title on LLC?
let me know
thanks
Hopefully, this article will help:
http://www.thecreativeinvestor.com/modules.php?name=News&file=article&articleid=438
Best regards,
Tim
always more expensive to insure if not in your name
You could go umbrella insurance and cover this in addition to other properties you own or might include within this same LLC.
We have "Landlord" policy through NY Mutual and have even had "Vacant Dwelling" both as individual and as LLC.
Find a good Broker and no worries. Just have the checkbook at the ready and pen poised
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On 2005-01-05 19:42, rayh781 wrote:
always more expensive to insure if not in your name
Not necessarily. If written "correctly" on a commercial-type policy, the form of ownership has no bearing on the premium whatsoever with most insurers.
Quote:
On 2005-01-05 17:26, knsv wrote:
just a question how did you manage to buy a property under the LLC name? was it deeded over to the LLC
or is the loan on your name but title on LLC?
let me know
thanks
I paid with cash from credit line equity.
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On 2005-01-05 20:59, iyat wrote:
Quote:
On 2005-01-05 17:26, knsv wrote:
just a question how did you manage to buy a property under the LLC name? was it deeded over to the LLC
or is the loan on your name but title on LLC?
let me know
thanks
I paid with cash from credit line
Also it's deeded on LLC
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On 2005-01-05 20:15, norrist wrote:
Quote:
On 2005-01-05 19:42, rayh781 wrote:
always more expensive to insure if not in your name
Not necessarily. If written "correctly" on a commercial-type policy, the form of ownership has no bearing on the premium whatsoever with most insurers.
But a commerical policy cost more which you dont need if property is in your own name. This extra cost should be added to the cost of doing a LLC which most dont look at. Never heard of a single insurance company that did not charge more for commerical policy.
Hi Ray!
You are correct, usually a commercial policy is more premium than a "personal lines" policy. You stated, though, that it was "always more expensive to insure if not in your name". My response was directed to the fact that if the policy is written, in my opinion, properly/ correctly, on a commercial form, the ownership (personal, LLC, trust, etc...) has no bearing on the premium. I think we're on the same page???
Tim
Can any of the experienced investors give a scenario and a dollar value of the cost of insuring a regular investment home (not a rehab)? :-?
Way too many variables...but maybe this article will help with some general issues...
http://www.thecreativeinvestor.com/modules.php?name=News&file=article&articleid=438
Best regards,
Tim[ Edited by norrist on Date 01/07/2005 ]
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On 2005-01-06 22:26, rayh781 wrote:
Quote:
On 2005-01-05 20:15, norrist wrote:
Quote:
On 2005-01-05 19:42, rayh781 wrote:
always more expensive to insure if not in your name
Not necessarily. If written "correctly" on a commercial-type policy, the form of ownership has no bearing on the premium whatsoever with most insurers.
But a commerical policy cost more which you dont need if property is in your own name. This extra cost should be added to the cost of doing a LLC which most dont look at. Never heard of a single insurance company that did not charge more for commerical policy.
Why not simply deed the property to a land trust?? That way you could still list your LLC as the beneficiary and do away w/ the commercial charges associated w/ LLC's.....just a thought.
God Bless
[addsig]
You will not be able to correctly insure a property owned by a "non-individual", Trust, LLC, Corp., etc... on anything but a commercial-type policy. If you are doing it now, you could create a claims settlement problem if the titled/deeded owner (in this example, a Trust) is not the First-named insured... Personal lines policies also "tie-in" your personal liability, many times from your homeowner's policy...
My insurance agent recently told me that my umbrella policy is worthless for protecting income producing property. Be careful and check with your agent about your policy coverage.
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On 2005-01-11 22:52, MarleneM wrote:
My insurance agent recently told me that my umbrella policy is worthless for protecting income producing property. Be careful and check with your agent about your policy coverage.
Is it a Personal Umbrella, and your properties are in a separate entity(ies)? Don't know the reasoning behind the Agent's statement... :-?
Norrist,
I want to be clear
I have rental prop that I have assiged to a land trust but have not yet recorded them Then I was going to tx them to a LLC
Question:
Are you saying when I call my Ins agent and tell them I have put properties into Land Trust that I'll now have difficulty getting coverage and the cost will be greater?
norrist said
Posted: 20:39 on 01-10-2005
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You will not be able to correctly insure a property owned by a "non-individual", Trust, LLC, Corp., etc... on anything but a commercial-type policy. If you are doing it now, you could create a claims settlement problem if the titled/deeded owner (in this example, a Trust) is not the First-named insured... Personal lines policies also "tie-in" your personal liability, many times from your homeowner's policy...
:-?
Potentially. Most insurers won't cover properties not owned by an individual under a "personal lines" policy, such as a "Dwelling Fire" contract. I have seen Agents in these situations name the individual on such a policy, even though the LLC, Trust, etc... may technically hold deed/title. This is wrong and could cost coverage in the event of a loss. Check with your Agent, but get confirmation that how they handle it coincides with the parameters of the respective insurer.
Tim