Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes
Does anyone know of an umbrella policy that allows 3 unit property to be covered which is held in llc? Is this possible or need to keep in my personal name.
Yes. Those policies exist and are commonplace; it's how commercial investors do business and how many residential property investors do as well. Where it becomes an issue is if you've financed the properties in your personal name. If that's the case, the policy will need to match the borrower (be in the personal name); it's a lending requirement.
Ask your insurance broker for commercial umbrella policy quotes and you'll be good to go.
@Henry Lazerow we have 3 SFH under owned by one LLC covered by a 2-part commercial policy. One part is a general liability that covers each house for $100k (low value homes) and a $1M/$2M liability. Second part is a $1M umbrella coverage just in case. For us the it costs around $400/year to add another $100k property to the policy.
The alternative is having a $1M/$2M (or whatever you desire) plus rebuild on each property which costs around $1,100 year for us. The umbrella is definitely the way to go if you’re okay if multiple properties sharing the liability risk.
I have a single umbrella policy and it covers my 38 doors. You just add each unit to the coverage. Reach out to any insurance agent, this is common stuff.