Title Insurance Void if transfer to LLC?

[Jay Lam]

Hello everyone, 

I wanted to get advice on transferring my rental property into an LLC in FL. I spoke with my title insurance company and they said transferring would void the insurance policy. However, on my policy it says it would insured if it is still in an entity wholly owned by my wife and I. I posted the definitions in our policy below. I wanted to get advice and clarification on this as I am not sure if they just want to sell me another policy. They also said I would not be able to add an endorsement. Thank you!

(d) “Insured": The Insured named in Schedule A.

(i) The term "Insured" also includes

(A) successors to the Title of the Insured by operation of law as distinguished from purchase, including heirs,

devisees, survivors, personal representatives, or next of kin;

(B) successors to an Insured by dissolution, merger, consolidation, distribution, or reorganization;

(C) successors to an Insured by its conversion to another kind of Entity;

(D) a grantee of an Insured under a deed delivered without payment of actual valuable consideration

conveying the Title

(1) if the stock, shares, memberships, or other equity interests of the grantee are wholly-owned by the

named Insured,

(2) if the grantee wholly owns the named Insured,

(3) if the grantee is wholly-owned by an affiliated Entity of the named Insured, provided the affiliated

Entity and the named Insured are both wholly-owned by the same person or Entity, or

(4) if the grantee is a trustee or beneficiary of a trust created by a written instrument established by the

Insured named in Schedule A for estate planning purposes.

[Corby Goade]

If the title company is telling you something different than what you think the policy says, I'd chat with my attorney. You'll get random advice from a bunch of us armchair lawyers here, but that's worth exactly what you pay for it.