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So I completed the transfer of my investment homes into an LLC. I was originally listed 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 listed as the NAMED INSURED now?
2. Or should I still be listed as the NAMED INSURED and name the LLC as the additional NAMED INSURED?

My insurance agent said that he only does individual insurance and thought that #2 would work.

4 Thoughts on After transferring my investment home into an LLC, who should be listed as Insured on the home insurance?
  1. Reply
    Andrew D
    October 30, 2011 at 3:36 am

    Not an insurance expert, but your LLC is like a person (an immortal person). He owns this investment property. I think the LLC, the homeowner, should be on the insurance. Just for liability reasons, thats why you have the LLC in case unexpected things occur. I have never heard of someone having their name on the insurance of someone else’s house. That just sounds messed up to me.

    Go with the LLC as the named insured.

  2. Reply
    October 30, 2011 at 4:27 am

    You just asked this.

    The named insured on the policy needs to match the legal owner’s name, on the deed.

    Because it’s a corporation, the corporation must be the named insured on the dwelling and liability coverage.

    Most likely, 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 named insured. If you do #2, you’re going to have problems, as YOU don’t have straightforward insurable interest.

  3. Reply
    Scott D
    October 30, 2011 at 4:40 am

    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 make sure you get it writing that your current agent says it’ll work.

    I’ve done #2 before, but only after talking it over with the underwriter to confirm coverage.

  4. Reply
    October 30, 2011 at 5:30 am

    Oh my……only the LLC can be the named insured if the deed says “LLC” . You, individually, have no interest in the property, so you cannot be named as an additional named insured. That would defeat the purpose of an LLC.

    There are many carriers (especially in CA) that will write a homeownerss policy under an LLC….talk to and INDEPENDENT agent. They can help! Stay away from captive agents (Farmers, State Farm, Allstate). Their agents can only sell their produts where and independent agent represents many carriers themselves or through wholesalers.

    Good Luck!

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