LLCs, Insurance, and Commercial Umbrella Policy

3 Replies

Scenario: Today, I have 5 properties covered under a personal umbrella policy. The carrier has informed me that I can no longer add any additional properties under the umbrella policy and I should look into a commercial umbrella policy.   2 of the properties are in an llc.   Question #1:  Do you have a recommendation of a a good commercial umbrella policy? Are all of your properties required to be with this same carrier?  Question #2:  Should all properties be placed under the llc?  Then you place a commercial umbrella policy over the llc?  Thanks, Roshael

Each property should be held in a separate LLC and have individual insurance policies.

You should also have a separate LLC for the operating company that manages all of the LLC's which will have it's own liability policy.

Make sure to talk to a commercial insurance agent in your area that works with investors and rental property owners to help you.

Originally posted by @Roshael Reece :

Scenario: Today, I have 5 properties covered under a personal umbrella policy. The carrier has informed me that I can no longer add any additional properties under the umbrella policy and I should look into a commercial umbrella policy.   2 of the properties are in an llc.   Question #1:  Do you have a recommendation of a a good commercial umbrella policy? Are all of your properties required to be with this same carrier?  Question #2:  Should all properties be placed under the llc?  Then you place a commercial umbrella policy over the llc?  Thanks, Roshael

1)  There are several out there.  I'll send you the names.

2)  No, you can have several different carriers

4) The commercial Umbrella can go over multiple LLC's and Personally owned properties.

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