Tax, Legal Issues, Contracts, Self-Directed IRA

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The infamous to LLC or not to LLC

Posted May 2 2022, 13:31

I know this topic has been beaten to death!! I am not posting to get advice on quit claiming to an LLC or not to. I am specifically asking if anybody has experience in doing so, and subsequently had to file an insurance claim after the transfer. How did that process go? If you have transferred to the LLC, and the insurance was originally written in your name than the policy is void, correct?
and rewriting a policy for a business is completely different? 

Does anybody have first hand experience with insurance dealings as far as claims after a quit claim from personal to LLC?

Baton Rouge, Louisiana

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Cameron Moore
  • Insurance Agent
  • DFW, TX
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Cameron Moore
  • Insurance Agent
  • DFW, TX
Replied May 2 2022, 14:41

I can speak to the issue of coverage. Ideally, when the LLC is formed then your agent/broker would either do a quick named insured change at no cost or add the LLC as an endrsed additional insured. Very straight forward and easy change.

Insurance Agent TX (#19197454)

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Yangbin Tong
  • Greater Baton Rouge Area
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Yangbin Tong
  • Greater Baton Rouge Area
Replied May 26 2022, 16:36
Quote from @Cameron Moore:

I can speak to the issue of coverage. Ideally, when the LLC is formed then your agent/broker would either do a quick named insured change at no cost or add the LLC as an endrsed additional insured. Very straight forward and easy change.

Thank you for the answer, Cameron! I have an additional question. When we use the buy and hold method, the property owner doesn't have to go thru a broker. Are you referring to the insurance agent/broker? By adding the LLC as insured, I assume that would add the cost? I'm new too, if that question seems too simple to you guys.