Why home insurance under LLC is more expensive?

Question

I have couple of SFH and condo under personal name and one house under LLC. When I try to get home insurance under LLC name, it is almost double premium I am paying and not all company is ready to write the insurance policy under LLC name.

I am wondering, how other BP members are handling this issue? Do you buy insurance with Liability? Or it is good to buy umbrella coverage?

Or what is the best way to buy property - under personal name or LLC?

Account Closed · Answer

People's Trust Insurance will write if it's in the LLC name (price doesn't change based on name). However they are currently only doing homeowners (HO3 & Rental) no HO6 policies/Condo and they are not currently writing in Tri-county. If you have more than 4 non - owner occupied homes they exclude liability as well.

Hope that helps

Ivan Oberon · Answer

The majority of insurance companies and agents out there are not structured correctly to address the various, specific needs of real estate investors.

I can offer you some good insights and solutions.  Reach out to me and I'll be happy to help.

Ivan

James Syed · Answer

Welcome to BP.

@Padma Mody

Your insurance premium should be the same as if you get insurance for your LLC, you  are the secondary beneficiary under it. Check with a different insurance agency.

I have a series LLC and pay the same premium if I had under my name. Of course, I am in Illinois, Florida might have different insurance laws.

Hope it helps.

Padma Mody · Answer

@John Thedford

Can you please let me know your insurance company name? What kind of separate policy is require?

John Thedford · Answer

The company I use does not cover liability. They require a separate policy. I hold SFR in an S Corp. I don't know if they charge more due to the form of ownership. I am going to ask tomorrow. The rates will always vary some due to differences in the structures, ages, locations, etc. Hopefully an insurance person familiar with underwriting in Florida can shed some light.

Why home insurance under LLC is more expensive?

Most Popular Reply