LLC vs personal insurance
My wife and I are in contract with our second small multi-family which we plan to move into. We haven't yet started an LLC but plan to in the next year and move the first multi-family title to the LLC. We are thinking the LLC to have Dwelling/Landlord insurance and then traditional homeowners for the multi we plan to live in. Is that the right train of thought?
-Joe
That could work, or you could simply get a personal contents policy to cover you and your things once you move in. There would be a lot of redundancy with adding a homeowners policy to a LL policy IMO, but LL policies typically play nicely with personal content policies (like Tenant Insurnace)
Quote from @Joe Botticelli:
My wife and I are in contract with our second small multi-family which we plan to move into. We haven't yet started an LLC but plan to in the next year and move the first multi-family title to the LLC. We are thinking the LLC to have Dwelling/Landlord insurance and then traditional homeowners for the multi we plan to live in. Is that the right train of thought?
-Joe
Joe, you will only be able to purchase one policy to cover the Structure, either a Landlord or Homeowners policy.
If you place the title in the LLC, you would purchase a Landlord policy and a Renters policy for the unit you would occupy.
If the property stays in your personal name, you would simply get a Homeowners policy with a Landlord endorsement to cover the Liability on the rented unit.
Quote from @Joe Botticelli:
My wife and I are in contract with our second small multi-family which we plan to move into. We haven't yet started an LLC but plan to in the next year and move the first multi-family title to the LLC. We are thinking the LLC to have Dwelling/Landlord insurance and then traditional homeowners for the multi we plan to live in. Is that the right train of thought?
-Joe
I wold confirm with your CPA or a CPA on the LLC for the property in your name. The information I have is that adding an LLC to your "primary residence" can create an issue when it comes tax time. I would look into and get an umbrella policy.