Insurance Ramifications Of Title Transfer
Hello again.
I've purchased a duplex earlier this month in my own name.
I'm ready (I think) to transfer it to my LLC.
When my attorney does this, are there any ramifications for the insurance? It's currently in my name and when I asked about getting it in the company's name earlier my agent told me it would cost more money.
I'd like to know what kinds of experiences you all have had in this area.
Thanks.
It shouldn't cost any more or less money, unless the Agent insured it on an incorrect policy form initially. As long as each entity that has an interest in the property is represented respectively, the rate shouldn't be affected. In other words, the insurer is insuring the property and protecting the entity. Your LLC is the entity. The entity doesn't change the exposure (the building), unless the entity is inherently different (i.e. you sell it to a new owner, or add a partner, then the exposure MAY change, depending on how the insurer looks at this new involved party).
If the Agent had the property written on a personal lines type policy form (incorrect...at best, unadvisable), then this may cost you more to insure it, not the fact you transfered title to the LLC. PM me if you'd like to discuss further. Hope this helps.
Tim