Hi!

We do have our rental in a trust, and in an LLC. So who do you recommend as an insurance company when the landlord is a trust?

We were told about National Real Estate Insurance Group and CHuBBS. NREIG has given us a quote, nothing from

Almost all insurance companies will insure a property held in a personal trust, not always when held in an LLC. But you have even a bigger problem and don't know about.

If you insure the rental property under your Trust or LLC, then sustain an injury on the property, who is your tenant going to sue? Not ABC LLC! Not the Joe and Leigh Family trust!

They will sue you, your spouse, your property manager -- all personally.

But when you file a claim with your insurance company, they will review the lawsuit and say, "You are not covered, personally. Only your Trust or LLC. Sorry No Coverage!"

You needed to put down under "Additionally Insured" all other possible names.

30 plus years ago I purchased an apartment complex with my parents and brother. I tried to get the insurance company to list all "owners", "Trusts", Fictitious Names ,etc. but the refused. My partners couldn't give a hoot and said I was being ridiculous.

In this case I told the insurance agent that I was ready to switch 14 policies to another carrier who understand about additional insured. With in 24 hours our policy was modified to fit our needs.

Robert,

I listed both the trust and the individual name as named insureds.

Is there any reason I would have better off having only one named insured and the other as an additional insured??

It is better to have all names in the "insured" sections of the policy rather than "additional insured". Unless you have many partners and wish to protect/hide your assets and hide your name down on some list.

Robert as always thought inspiring comments and experiences. If you don't mind I'd like to add you should not have assets in your name. What I mean by that: we have a separate Corp that owns work trucks and vans-- the corp also has the employee's and their pay checks. We sub out work through the corp. So IN theory if we are sued we have nothing to get. Our home is the only thing we have in our name and we have left a hefty mort in place on it.

myob (GA) you are so right/correct on having things separated AND also needing to have all properties under different LLC's.

A friend with a 4 million dollar apartment/townhomes, a shopping center and a string of apart buildings had everything under 1 LLC. So instead of having a LLC with 1 Million to 5 million is separate assets, they were combined with a net value of over 15 million.

When there was a women attacked and raped in a parking garage at a property, ending up with physical and mental conditions requiring years of treatment, he got sued.

First the lawyer was going to ask 5 million, the value of the property and insurance coverage. But when he learned the owner was on single LLC with 15 million, the lawyer re-filed asking for everything.

So as a settlement the insurance gave her 5 million cash and the owner singed over the 5 million dollar property.

I don't understand what you are trying to do. Typically though, the LLC with no or little assets is the property manager. The owner is the land trust with a different LLC as trustee. If you need to add yet another layer of privacy - make the beneficiary a personal property trust with that trustee being an out of state.

Now to file, someone would need to serve papers on six people/Identities in multiple states. That is a significant amount of work. Assuming you don't make too many mistakes and carry insurance - you should be alright.

Leigh,

Which company did you go with? I am shopping for insurance too. I used NREIG many years ago for liability coverage only, never used them for structure We have a lot of hail claims in Texas, not sure how good they hare handling claims. Thanks