Lender requiring insurance be switched to my name instead of LLC

[Nick Brubaker]

Hello all,

I have a rental property bought with cash (no original financing) and owned under an LLC. I later refinanced it. My insurance policy has recently been discontinued and replaced with a similar policy (really just internal renaming/IDing). Just received a message from my mortgage bank that the:

"Name Insured on the property is not correct. According to our records the Named Insured should read as follows --My Name not LLC--. To comply with the terms of your loan, please contact your insurance agent and request the Named Insured on your policy be updated accordingly.."

How do you advise following up on this? The rental is owned under the LLC for a reason. What are the implications of the insurance naming the LLC or my own name (single member LLC btw)? Is there reason to push for keeping the LLC the Named Insured and is that even an option typically? Is the solution to have myself as the name insured and the LLC as an additional as I've seen suggested in a couple other posts? It is a business/commercial policy.

[Jason Bott]

@Nick Brubaker this issue is very common and one my office deals with weekly, if not daily.

Many investors will keep the properties in their name and buy an Umbrella policy instead of moving them over to the LLC.