Updated over 6 years ago on . Most recent reply
Insurance Requirements on Rentals
I have recently started talking with a CPA about my rental properties and he brought up a point that i had never heard of or considered in the past.
First let me start that I purchase the properties in my name and then transfer them to my llc's about six weeks later. Which means the mortgage is held personally in my wife and I's names. I have always in the past transferred the insurance to the llc when this happened.
He explained to me that the insurance should list both the llc and us. The reason he said was that if someone were to trip and fall the llc is listed as insured and coverage would be supplied. However he said if there were to be a fire at the property and they show the mortgage to be in my name and the insured the llc and not those listed on the mortgage it COULD cause a problem, which is why he says both us and the llc should be listed. My concern is on the trip nd fall side if i am listed as the insured with the llc does that defeat the whole llc protection?
Anyone ever deal with this situation? Looking for guidance...