Skip to content
Insurance

User Stats

3
Posts
1
Votes
Joe Botticelli
  • Homeowner
  • Albany
1
Votes |
3
Posts

LLC vs personal insurance

Joe Botticelli
  • Homeowner
  • Albany
Posted Nov 15 2022, 17:13

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

User Stats

3,018
Posts
2,312
Votes
Will Fraser
  • Real Estate Broker
  • Salt Lake City & Oklahoma City
2,312
Votes |
3,018
Posts
Will Fraser
  • Real Estate Broker
  • Salt Lake City & Oklahoma City
Replied Nov 16 2022, 07:36

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)

User Stats

2,472
Posts
1,406
Votes
Jason Bott
Pro Member
#2 Insurance Contributor
  • Insurance Agent
  • Nationwide
1,406
Votes |
2,472
Posts
Jason Bott
Pro Member
#2 Insurance Contributor
  • Insurance Agent
  • Nationwide
Replied Nov 16 2022, 10:34
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.

BiggerPockets logo
BiggerPockets
|
Sponsored
Find an investor-friendly agent in your market TODAY Get matched with our network of trusted, local, investor friendly agents in under 2 minutes

User Stats

1,863
Posts
929
Votes
Peter Mckernan
  • Residential Real Estate Agent
  • Irvine, CA
929
Votes |
1,863
Posts
Peter Mckernan
  • Residential Real Estate Agent
  • Irvine, CA
Replied Nov 29 2022, 06:47
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.

  • Real Estate Agent Ca (#01968986)

The McKernan Group Logo