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. tongue laugh

Comments(18)

  • myfrogger5th January, 2005

    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.

  • knsv5th January, 2005

    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

  • norrist5th January, 2005

    Hopefully, this article will help:

    http://www.thecreativeinvestor.com/modules.php?name=News&file=article&articleid=438

    Best regards,

    Tim

  • rayh7815th January, 2005

    always more expensive to insure if not in your name

  • motivated_buyer5th January, 2005

    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 grin

  • norrist5th January, 2005

    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.

  • iyat5th January, 2005

    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.

  • iyat5th January, 2005

    Quote:
    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

  • rayh7816th January, 2005

    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.

  • norrist7th January, 2005

    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???
    grin

    Tim

  • padam107th January, 2005

    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)? :-?

  • norrist7th January, 2005

    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 ]

  • shamund10th January, 2005

    Quote:
    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]

  • norrist10th January, 2005

    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...

  • MarleneM11th January, 2005

    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.

  • norrist12th January, 2005

    Quote:
    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... :-?

  • LynLinz14th January, 2005

    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
    --------------------------------------------------------------------------------
    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...
    :-?

  • norrist14th January, 2005

    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

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