Hi there!

We are preparing to invest in our first property in the next 6 months, and I'm wondering about what insurance we will need since we plan to have it our new LLC's name.

I know we’ll need homeowner’s insurance, but what about liability?

Are the requirements different when the property is owned by your LLC than when it's in your personal name?

A few thoughts for you.

Are you sure you need or even WANT an LLC? There are many downsides to investing in single family rentals in an LLC and in my (not a lawyer) opinion, more people get them than really need them.

It is worth noting that you do not want a homeowners policy.  As the owner of a rent property, you are not insuring the contents of the property (e.g couches, TVs).  Otherwise, things are pretty similar.  Go find a good broker that knows rent property and talk with them.

You definitely want liability. I used to get $500K per property plus a $2M umbrella. I did this instead of having an LLC and it allowed me to get better financing too.

@Lindsey Smith from an insurance perspective, you will want all of the same coverage's no matter how it's titled.

The first step is to ask your lender if they will need the insurance in your name or the LLC. There is a strong possibility they will not allow the LLC to be the Named Insured on the policy.

Lindsey, I have to correct/add to something that Greg mentioned. Depending on the Insurance Company and the details of the ownership/use of the LLC you may be able to put this on a Homeowners. If it is a home you will be occupying, there are no other properties in the LLC and there are no outside (no-family) LLC members some companies will write it. You should check with several independent agents and see if they have any companies that will do it. Greg was accurate about your belongings. If they are not owned by the LLC you need to have your names added to the policy as additional insureds. As Jason mentioned, if the title of the property is in the LLC it should be the Named insured on the policy.