Updated over 5 years ago on . Most recent reply
Insurance coverage for property under LLC owned by partners
Hello BPF users,
I have started investing in Single Family Homes around Austin, TX in partnership with my friend. We have couple properties that we bought and transferred it over to LLC with 2 members (Myself and my friend again). I was able to get the LLC added as "Additional Insured". They are insured with Safeco and Travelers currently. However, my local insurance agent tells me Safeco and Travelers doesn't extend coverage for LLC with partners outside family. In my case its my buddy who is technically not family. Is that true ? I would appreciate inputs from experienced investors and insurance agents here. Thanks in advance!
Most Popular Reply
The best way to know for sure is to read your policy document. I am sure this varies by carrier and by policy. Insurance is one of several "gotchas" in using an LLC with residential real estate.