How are LLC partnerships insuring properties

[Wes Singleton]

I'm trying to acquire a couple single family rental units with a partner this year, but when talking to insurance agents in my town, (Louisville, KY), I am being told that any property in a trust or LLC must have commercial landlord insurance. The issue is that commercial insurance is so expensive, there is just no way to be profitable while using it (for a policy with just a couple properties). I can place the investment property in my name and get traditional landlord coverage, but then I don't see how we could structure the partnership if the properties are in only my name or my partners. We want the partnership to share in the risk, debt, and income 50/50. How are partnerships getting around this insanely high commercial insurance when first starting out? I'm sure after you acquire 10+ properties you can get decent commercial rates, but what about if you just have 2 or 3?

[Michael Seeker]

@Wes Singleton - We use NREIG for our rental properties in Louisville. Most are in LLC's, however one is still in my personal name but no issues. They are great to work with and very landlord friendly. I don't have any affiliation with them other than insuring my property with them.

I have not had to file a claim yet so cannot speak to that aspect of things but they are awesome on the front end.