Sub 2 (or retitling) and insurance

Sub 2 (or retitling) and insurance

Rental Property Investor · Silver Spring, MD · Member since 2017 · 81 posts · 59 votes

This has happened to me twice now, and I'm curious how others have dealt with it. I have a property that I retitled into the name of an LLC. The bank doesn't notice the change itself, but they do notice that the name on the insurance policy has changed and they send me a letter demanding I explain why. Sub 2 people must have this problem too - how do you deal with it?

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  • Greg ScottPro Member
    Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes
    1y

    Hopefully you never actually have to make a claim. Insurance proceeds are typically provided in a check that must be endorsed by both the policy holder and the mortgage holder. Will the mortgage holder sign off if the proceeds go to an LLC that isn't their borrower?

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