Insurance More For LLC Vs Own Name
Was getting ready to move some rentals into a LLC. My agent just told me Erie insurance will no longer offer thier standard landlord policy on property deed in the name of a LLC must be in mu own name. There is another type of policy that will cover in the name of the LLC but am sure it will be higher. Waiting on the price. Sounds like it maybe better to keep deed in my name. Anybody run into this yet?
It sounds like the property is insured currently on a "personal form". Deeding it to the LLC will force the Agent to move it to a "commercial form". The commercial form is more comprehensive, though possibly more expensive. If done correctly, rental property should be on the commercial form regardless of deeded owner. Don't jeopardize personal assets by saving a few bucks on the insurance. Place the property in the LLC, insure it "correctly", then raise your deductible to offset much of the premium...my 2 cents...good luck.
Tim[ Edited by norrist on Date 04/29/2004 ]
norrist,
Would you consider writing an article for us landlords which explains why we should be insuring our rentals on a commercial form? What makes the commercial policy more comprehensive? What gaps do we have with the personal form that would be addressed by the commercial form?
How many properties can be (or should be) put on a commercial form?
Dave,
Sent you a PM. Let me know. Thanks, Tim
Also, most carriers that offer package policies don't put a location limit on the contract. However, they may put a total coverage amount limit. I know of some clients that have over 200 single families on one policy...