Insurance for properties held in LLC but not occupied

[Kevin Kittilsen]

I hold a couple of properties in a series LLC. Both properties are currently uninhabited as we prepare plans to demolish the existing homes to clear way for development.

Property A consists of two parcels, one parcel with one home, the other parcel with two homes on it. All three homes are in poor condition and I have no plans to put renters in.

Property B consists of one parcel with a single family home. The home is also in very poor condition and no plans to put renters in.

However, I want to make sure I have property liability coverage should something happen on the properties, someone trip and fall, etc.. Looking for advice on what type of policy this would be.

Thanks in advance!

[John Mocker]

Kevin,

You can get a General Liability policy to cover the two parcels as vacant dwellings. If the LLC has other Liability coverage you may also be able to extend coverage to these parcels.

The demolition may be a problem with a lot of Insurance Companies.  You may have to cancel the vacant dwelling policy and get different coverage during the demo.   If you are using a demo company see about having their company can extend a short term policy to you during the demo.

After the Demo, you would either insure the parcels as vacant land or if you are starting construction right away, insure them as either as part of the Builders Risk Package or a separate liability policy along with it.

[Jason Bott]

@Kevin Kittilsen I 2nd @John Mocker comments.  We have tried to place only General Liability on condemned homes and no insurance carrier wants it.  

The proper fit is with a Vacant Building policy and try and get the Building Limit as low as possible.

In regards to the demolition, there are a few insurance carriers here in the Midwest that will do demolition policies for single family homes.

[John Warren]

@Kevin Kittilsen I can put you in touch with my insurance guy who is local here in Chicago. I feel like there has to be a better solution here. Maybe some sort of umbrella policy or something for the LLC? The right insurance person would know.