I have a few properties in my personal name and carry a large umbrella for peace of mind. I am getting into commercial loans and plan to purchase inside of my LLC. If I wanted to move my other policies to my LLC will I need to change my insurance to commercial or another plan besides residential to protect the possibly of piercing the veil of my LLC should something happen?
Would anyone recommend keeping my personal umbrella as another layer of safety? I'm sure several of you have done this, a step by step would be great along with what to look out for.
Id still carry an umbrella on the LLC holdings, Some insurance companies aren't able to write for LLCs though so you definitely need to have this conversation with your agent. You may need to cancel policys and reissue at the very least when you transfer the property.
I think a personal umbrella is only slightly less necessary when holding in LLC. Piercing is rare but people often find other ways around it. For example they say you individually were negligent. Now if you never met your tenant and had a outside property management company and never personally inspected the property you would likely have a perfect defense to that claim but even then they could sue you and you would have legal fees etc to defend it.
Best of luck
From what it sounds like, you would just have one policy. You can reduce your personal umbrella, but I wouldn't get rid of it entirely.
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