Investor · Durham NC (and Brenham, TX) · Member since 2018 · 301 posts · 197 votes
Hi BP,
I have a rental that I deeded over to my LLC after getting financing in my personal name (the strategy I've learned here for getting better loan rates/terms). I'm having some trouble now with the home insurance policy, since the insurance company (State Farm) wants the name on the policy to match the deed (my LLC), and the lender wants the name on the policy to match the loan (my name). Apparently using my name plus the LLC as "additional insured" isn't passing through underwriting at the insurance company.
Have others faced this issue, and how have you handled it?
Investor · Northern VA · Member since 2020 · 124 posts · 87 votes
6y
Hi Annchen,
This is a pretty common issue. It's a little hairy and complicated, but the bottom line is that both you and the LLC should be on the policy. One as named insured, and one as additional. I would have your insurance agent press your lender to say what they will accept, and go with what they say. I've done this several times, in various states, and things vary depending how flexible or conservative your lender is and possibly whether you're dealing with personal lines insurance or commercial lines.
Insurance Agent · Norwalk, CT · Member since 2016 · 2k+ posts · 1k+ votes
6y
Annchen
Since the property is owned in the LLC, the LLC should be the named insured on the policy. You no longer have an interest in the property (except through the LLC) so I am not surprised that the company will not put the policy in both names.
The good news is that there are other Insurance companies that will do it. Call around to multiple Independent Agents and see which companies will do it and what their rates are.