When you have move from a personal insurance policy to a commercial policy

[Jason Bott]

I see a lot of discussions on when to keep properties in a personal name versus llc.  I thought this post could help investors in the planning process.

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At some point the insurance company will not allow you to add more units to your Home/Auto package and force you to put your additional properties/units onto a commercial policy. 

Here is our internal "cheat sheet" showing the # of rentals each insurance company will allow you to have on your personal insurance before moving you to a commercial policy.  By no means does this list include every company out in the market place.  But it does give enough of a cross section for you to get an idea of when you will need to make a move to a commercial policy.

* Dwelling is a single family home

* # of units is total units.Example, 4 units can be 4 SFH, 2 duplexes or 1- 4 family

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ACE--Typically like maxing out on 5 or 6 units

Acuity—12 units or 4 dwellings

Allied/Nationwide —We can take up to 8 units.

American Family – Need to have auto & home along with a commercial policy in order to consider any rentals.

Auto Owner’s—No Max

Badger Mutual - 6 would be our limit. We have to have the primary home as the supporting, not just auto.

Chartis—5 or 6 locations

Chubb—-- Our comfort level is 3 rentals at the most.  After that home office needs to review typically

Cincinnati— Will only take 5 dwellings, otherwise it would have to go commercial lines.

Fireman’s Fund—5 dwellings

General Casualty—4 dwellings

Germantown Mutual-- More than 5 locations then they need to be written on a Commercial policy. 

Harleysville -- 3 locations with a total of 6 units.

Hartford -- 4 units total, so 4 single family home, 2 duplexes or 1 fourplex

Kemper – 4 units

MetLife—4 total landlord rental dwellings with an aggregate of 8 total units.  No more than four units per dwelling. 

Pure – 2 rentals

Safeco—Up to 8 units

Secura—4 units

State Farm – 1 duplex, but has to be owner occupied.Will not allow 3 or more units owner occupied.

Travelers—Up to 9 dwellings

West Bend—4 dwellings and each dwelling can have no more than 4 units.

Western National – 5 units

Hopefully this list helps you in your future decisions.