My new partner and I bought a duplex in St. Louis through conventional financing and we are closing in less than two weeks however we haven't formed an LLC - We both have our own LLC's but we just formed this partnership and haven't established one yet between us. The loan is in both of our names...so the question is how do take out insurance on the property...some insurance companies are telling us that we have to take out insurance within an LLC...is that true, and if it is then how do we do that since we haven't closed and can't quit claim the property into the LLC?...or am I not asking the right question?

Great question. I'll be interested to hear the response of others my experienced than I am. 

@Andy Borses

Yeah, this sounds like a pretty complicated situation. in general, you don't usually transfer a conforming residential loans. Maybe the conventional loan is the only product, but legal entities, e.g LLC, are not eligible for conforming residential loans. So, either way you shouldn't be able to get the loan over to the LLC.

Can you get your purchase contract to be modified to include to be purchased by yourselves "... and an entity to be formed?" Do you have time to form a LLC? But, then you need to find commercial financing, and realize you need to pay for the additional costs associated with it.

When you have non-spousal partners, you generally need to have a legal entity. Your insurance policy would start on the day of closing anyway. Your insurance carrier maybe having a problem trying to write a residential policy for the two of you. Policies only work when there is an "insurable interest."

Quit claiming the deed to the LLC after closing is rife with problems from my layman's point of view. But, that is a separate topic.

Honestly, to solve your immediate problem, you may need to find another insurance company.

When you say "...but we just formed this partnership..." I assume you mean you just decided to invest with each other as opposed to forming a legal partnership?  Otherwise, you can still invest with a legal partnership and go commercial (lending and insurance policy) all the way.

You haven't bought anything yet since you close in two weeks.  Sounds like your main sticking point to go through with this deal is to get the insurance.

Good luck.