Is it OK if LLC (Beneficiary) of Land trust not on insurance policy?

[Elly Rudolph]

Hello,

I have rentals in Indianapolis, IN. A Land Trust owns the properties. The beneficiary is foreign LLC of Master LLC. I am the trustee. The insurance I have does not allow me to add LLC as additional insured. Other insurance cost me double.

I read the below article that indicates it is OK to exclude the beneficiary (LLC) from insurance. I would like to confirm this is the case.

https://www.forbes.com/sites/alangassman/2019/07/31/tricks-o...

Using a Land Trust that is owned by an LLC

Some carriers that would charge more or not cover property under an LLC will provide normal coverage if the LLC owns a land trust that the client is the trustee of, and the land trust owns the property. For income tax and liability insulation purposes, this is generally the same thing as direct ownership by an LLC under Florida law, but also meets personal policy liability insurance company guidelines for some carriers.

Thanks,

Elly