Insurance for rentals and vacant properties deeded to LLC

[Richard Okagbue]

Several real estate properties in KCMO owned under LLC, most are rented already, we typically buy a vacant house, spend 6 or so months to rehab it from top to bottom, then rent it out. Now we have a problem of getting insurance for these properties which are now deeded to the LLC. They all used to be under me personally, so I had them insured by Farmers and Foremost. Foremost was used for the properties while vacant and being rehabbed and then after the rehab and upon rental, the property would be transferred to Farmers. My Farmers agent tells me the only option with Farmers would be a commercial policy as the owner of the properties is the LLC. The quote I got was literally double what I was paying as the policies were under me personally. I understand that a policy without a personal guarantee would cost more than one with it, but I don't expect it to be 100% higher.

Can't I get insurance for these properties without going to a commercial policy? Thanks for all help!

[Derek Lacy]

If the property is in the name of the LLC, but you insure it in your personal name and additional insured the LLC, you are at risk of voiding the policy. Due to no insurable interest of the named insured.

How many KCMO properties at any given time? I can list the insurers that would be interested in providing competitive coverage.