LLC Liability Insurance Question

[Braden Hobbs]

Hello! We're under contract on our first rental property here in Colorado. We've been chatting with insurance brokers and a couple things have come up that I'm not sure about and don't know if they brokers really know either.

The property will be owned in the LLC's name. We plan to insure the property under the LLC's name with a dwelling policy for replacement value, and $500,000 liability coverage, along with an umbrella policy in the LLC's name. Because we're also self managing the property, my concern is that we're leaving the members of the LLC susceptible to being sued because all insurance is in the LLC's name. Or does the LLC and it's insurance inherently protect the members?

Thanks for your input!

[Derek Lacy]

Depends on form. Only the broker representing could tell you. But usually members would be covered in their capacity as member. Email for a more specific answer.