Single family rental insurance

[Clifford Firthh]

Hi,

I have a single family I will be renting out. The home is in my LLC. My DP3 insurance company is saying that if the insurance is purchased in the LLC then there will be no liability coverage or medical payment. But if I purchase the insurance in my name and add the LLC as additional insured there will be Liability and medical on the plan. Is this common?

Thanks in advance for anyone who can help me understand this!

[John Mocker]

Clifford,

That may be the way that insurance company does it but that is not the norm. Most DP3 policies I write with, that will write in an LLC name, will allow the LLC to be the named Insured. If the Title is in the LLC, the LLC should be the named insured. If that company will not write the LLC as the named insured is it really eligible for their program?

Check with your attorney to see if having the insurance in your name would help a claimant break the corporate veil.