Insurance for properties held in LLC but not occupied

[Kevin Kittilsen]

I hold a couple of properties in a series LLC. Both properties are currently uninhabited as we prepare plans to demolish the existing homes to clear way for development.

Property A consists of two parcels, one parcel with one home, the other parcel with two homes on it. All three homes are in poor condition and I have no plans to put renters in.

Property B consists of one parcel with a single family home. The home is also in very poor condition and no plans to put renters in.

However, I want to make sure I have property liability coverage should something happen on the properties, someone trip and fall, etc.. Looking for advice on what type of policy this would be.

Thanks in advance!

[John Mocker]

Kevin,

You can get a General Liability policy to cover the two parcels as vacant dwellings. If the LLC has other Liability coverage you may also be able to extend coverage to these parcels.

The demolition may be a problem with a lot of Insurance Companies.  You may have to cancel the vacant dwelling policy and get different coverage during the demo.   If you are using a demo company see about having their company can extend a short term policy to you during the demo.

After the Demo, you would either insure the parcels as vacant land or if you are starting construction right away, insure them as either as part of the Builders Risk Package or a separate liability policy along with it.