For a rental owned by LLC, who is the insured?

Question

Who's the insured on these policies — the entity (LLC) or the manager (really, owner of property) OR both?

Policies exclusively naming the entity (LLC) are rear and expensive! What’s the upside, anyway?

Those where both the entity & the entity manager (usually the true owner of the protected assets) are plenty & cheaper. What’s the downside to having both as the insured?

What do most investors do? Yes, I’m a newbie !!!

Thank you for your help in advance.

Jake DeBoer · Answer

LLC is named insured on all my policies -- I have policies with Foremost and, just recently, Obie Insurance, no issues.

Casey J Burkhead · Answer

Hey Edwin,The main reason investors use an LLC is to protect their personal assets. So I typically advise my clients to purchase a policy solely in the LLC name when applicable. Otherwise, your personal name is listed on the policy and leaves an opening for the LLC protection to be pierced. The LLC is the named insured in this case. As you mentioned, you can purchase a policy under your personal name and have the LLC listed as an additional insured. You would both be named insureds in this case. If you are finding it to be more expensive to purchase a policy solely in the LLC name, I would say keep shopping. Find an independent agent that has multiple options in the whatever state your property is located. I work with a regional carrier that offers very competitive prices for investors in our tri-state area and only requires the LLC name to be listed.

- Casey

Edwin Batte · Answer

@Ryan Letzeiser Sorry for the late reply; I've not been here much. Thank you for reaching out. Got 2 with you guys; may be 2 more soon. Chat some time.

Edwin Batte · Answer

@Jake DeBoer, resources given have been very helpful. Ty very much!

Eric Goldman · Answer

@Casey J Burkhead hit the nail on the head.

Ryan Letzeiser · Answer

Hey @Edwin Batte! I am one of the co-founders over at Obie. Let me know if I can ever be helpful. As you look to get more informed we have some insurance educational resources on our site from terms to a risk map which will help you when you go to acquire new properties to see if you are in a flood zone, quake, fire as well as be able to look at the risks that drive up premium like convective (wind), your proximity to a fire station, and the replacement cost of the property. Shoot me a note if you ever want to chat.

Edwin Batte · Answer

@Casey J Burkhead, thank you.

Edwin Batte · Answer

@Jake DeBoer, thank you.

Edwin Batte · Answer

@Casey J Burkhead, thank you very much for your prompt response. It’s clear & very helpful. One of my goals is to keep it clean and maintain that protection.

I’m closing on a SFR rental in Texas. I keep reaching out to multiple agencies.

Thank you sir!

Edwin Batte · Answer

@Casey J Burkhead, thank you very much for your prompt response. It’s clear & very helpful. One of my goals is to keep it clean and maintain that protection.

I’m closing on a SFR rental in Texas. I keep reaching out to multiple agencies.

Thank you sir!

For a rental owned by LLC, who is the insured?

For a rental owned by LLC, who is the insured?

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