Who should be primary named insured?

Question

Hello,

in a land trust structure with an LLC trustee and beneficial owner (where you are the grantor of the land trust and 100% owner of the LLC), and the property was deeded to the land trust with the llc named on the deed as trustee. When it comes to landlord insurance who should be listed as the primary named insured? The land trust or the llc? The other would still be listed as additional named insured. Or does it not matter as long as both are listed as either primary names insured and additional?

Thank you in advance !

James Kim

Garret A. · Answer

Hi James,

Sorry for the late reply but good question.

I assuming the insurance company has you LLC listed as primary insured because you vest on title through that entity? Most lenders are going to want to see everything match when writing the debt instrument. What I mean by that is: loan in personal name = property in personal name. Loan in LLC = property in LLC. It Sounds like you took the loan out in your name when you vested personally as a natural individual and then deeded into your LLC. Am I correct?

James Kim · Answer

Hi Trevor,

Thanks for getting back, much appreciated. But yes, the loan is in my personal name and i deeded it into my land trust where the LLC is the trustee. The insurance is under LLC as primary insured, with land trust and me listed as additional named insured. Is that ok?

Thanks

James

James Kim · Answer

Hi Trevor, appreciate the response. One question, if the mortgage is under my personal name and the insurance has LLC as primary named insured and myself as additional named insured, would the mortgage company accept the insurance?

Thanks!

James Kim

Garret A. · Answer

Hi James,

Usually best to have the Entity being the operator as the main name insured. Never hurts to have personal names to be added as additional insured.