LLC vs Good Insurance For A Rental

[Account Closed]

For those of you who's primary residency became a rental and the mortgage is still in your personal name, what are your thoughts on transferring the property to an LLC vs just having good insurance in place? Ideally it would be best to do the transfer to an LLC but given the risk of the due on sale clause is it worth the risk or just having good insurance in place would be just fine for liability protection?

[Chris Simmons]

Good insurance in your name. Transfer it to the LLC and your homeowners insurance won't cover you. You can still pay the premium, but once they find out it is a rental....claim denied. Thanks for playing. The LLC insurance will cost way more. Update the insurance company and get a rental policy. Will cost about as much as your current homeowners policy but cover less.....basically the house and a few items like appliances etc. The tenants need their own renters insurance to cover their stuff. Beef it up with lots of liability coverage, loss of use etc. Way cheaper to go. Assuming you did not live in a hazardous turd before you decided to rent it, your exposure to liability should be minimal.