Originally posted by Steve Babiak:
Agree that the policy on the property should have the actual owner as the named insured; if the owner is an individual, then the name of the individual; if a partnership then the name of the partnership, if LLC owns it, then LLC is named as insured. LLC members might be named as additional insureds, if your advisors so advise.
Jason, here is what I have been advised: If your entity is on title, but you are named personally as the insurance policy holder, the insurance company could have a "reason" to not pay out claiming the owner was not the insured party. I have choosen the side of caution and always got insurance in the entity name. I use my local Farner's agent who also has the ability to get me some specific insurance policies for rehabbers which also includes $1M in liability protection on the property.
I have no idea if, in a court of law, the insurance company could get away with such a technicality, but I don't want to find out!!
My second concern is the corporate veil. A party wishing to sue you need only ONE means to pirce that veil and again, I choose the side of caution here.
Your call from here bud. :D
My insurance company (Allstate) doesn't do "commercial" insurance, and as such, won't list my company as the primary insured. Instead, they list me as the primary insured, with my company as the additional insured.
According to my insurance agent (and another I've spoken to about this), this shouldn't result in any issues if I ever have to make a claim. My bigger concern is "breaking the corporate veil," but I don't think this detail alone would do that (though it's probably worth verifying with my attorney).
If anyone has more info, would love to hear it!
