Updated over 8 years ago on . Most recent reply
Policy Holder (LLC vs Personal)
I am new to real estate investing and only have one property that is tenant occupied. First, I set up an LLC to protect my personal assets. Second, the lease is under the LLC and deed recently transferred to the LLC. Third, I've decided to keep the mortgage in my name because transferring to the LLC and still being a guarantor does not change much. At least from my position and the lender may think otherwise. Luckily, the lender has not called in the mortgage after the deed transfer. I know this is a huge risk.
Okay, now that you have a little background I will ask my question. Currently, my homeowners policy is under my name and is a "landlord" policy as described by the insurer. Do I need to change this policy to the LLC since the LLC is now listed on the deed? If yes, the policy changes to a commercial policy and doubles my premium. Or do I stay with the "landlord" policy (in my name) since the mortgage is in my name?
I have this question out to my attorney, but wanted other experts to chime in. Thank you in advance.