Does my LLC. need a personal liability policy?

[Marcos Carbi]

Hey guys,

I'm in the process of closing on my second duplex and I honestly don't understand insurance as much as I'd like to. 

My situation: I'm closing on the property under my mom's and my name and then transferring the title into my LLC - I'm doing this to get a better mortgage rate/terms. Since the property will be under my LLC, the insurance company doesn't provide personal liability coverage on the home insurance policy. Therefore, I'm getting an additional personal liability policy for my LLC, with $300K in coverage.

I was wondering if this is the right thing to do, or if I should be doing something else. I did this with my first duplex as well.  

I appreciate your time and help!

[John Mocker]

Marcos,

You may want to see if they will write a higher limit than $300,000 and the cost.  A lot of companies will do $500,000 or $1,000,000 limits for Liability.  The cost normally is not that much higher for the additional coverage.   if the company will not write higher than $300,000 you may be able to do an Umbrella policy to get an additional Liability coverage.