Insurance options when property is owned by LLC

[Carl Dowdy]

I'm curious what options you've found for reasonable insurance premiums when title to a rental is held by an LLC - and you want that LLC to have a few million in liability coverage. If I keep title in my name I'll continue paying $1,400/year in insurance, but if I move title to an LLC, I'll need to pay over $4,000/year for comparable coverage.

Currently I hold title to the duplex in question in my name and have a standard dwelling fire policy with Travelers with a $500k liability limit (and $550k coverage on the building). Cost is only $1,400/year. Since title is held in my name, my umbrella provides excess coverage. If I move title to an LLC, Travelers will let me add the LLC as an additional insured, but I cannot make it the first named insured. Problem is, my umbrella policy with Auto Owners won't cover the LLC either way, so my equity in the duplex would be exposed above a $500k judgment (yes I would be covered personally, but my equity in this property would be at risk). My objective is for the LLC as owner of the duplex to have at least $2MM to $3MM in liability insurance.

I found an umbrella carrier, Hudson Specialty Insurance, that offers $2MM in liability coverage for an LLC at $1,075/year, but the LLC has to be the first named insured on the underlying policy. A dwelling fire policy with Auto Owners naming the LLC as the first named insured is $3k/year, versus my current policy at $1,400/year.

I also explored going the commercial route, but the CGL and commercial property policy was quoted at $4,277/year with $1MM liability.  The $2MM commercial umbrella would be an additional $550/year.  Again, making this option quite expensive at nearly $5k/year

Ideally I could find an umbrella carrier that would write a policy covering an LLC when the underlying policy only names the LLC as an additional insured. Anyone have any leads there? Any other approaches or brokers/carries you're happy with?

Thanks for the help! 

[Jason Bott]

Originally posted by @Carl Dowdy:

I'm curious what options you've found for reasonable insurance premiums when title to a rental is held by an LLC - and you want that LLC to have a few million in liability coverage. If I keep title in my name I'll continue paying $1,400/year in insurance, but if I move title to an LLC, I'll need to pay over $4,000/year for comparable coverage.

Currently I hold title to the duplex in question in my name and have a standard dwelling fire policy with Travelers with a $500k liability limit (and $550k coverage on the building). Cost is only $1,400/year. Since title is held in my name, my umbrella provides excess coverage. If I move title to an LLC, Travelers will let me add the LLC as an additional insured, but I cannot make it the first named insured. Problem is, my umbrella policy with Auto Owners won't cover the LLC either way, so my equity in the duplex would be exposed above a $500k judgment (yes I would be covered personally, but my equity in this property would be at risk). My objective is for the LLC as owner of the duplex to have at least $2MM to $3MM in liability insurance.

I found an umbrella carrier, Hudson Specialty Insurance, that offers $2MM in liability coverage for an LLC at $1,075/year, but the LLC has to be the first named insured on the underlying policy. A dwelling fire policy with Auto Owners naming the LLC as the first named insured is $3k/year, versus my current policy at $1,400/year.

I also explored going the commercial route, but the CGL and commercial property policy was quoted at $4,277/year with $1MM liability.  The $2MM commercial umbrella would be an additional $550/year.  Again, making this option quite expensive at nearly $5k/year

Ideally I could find an umbrella carrier that would write a policy covering an LLC when the underlying policy only names the LLC as an additional insured. Anyone have any leads there? Any other approaches or brokers/carries you're happy with?

Thanks for the help! 

 Carl, there are other insurance carriers with better terms.  With all of my clients in CO, I do not use any of the carriers you name above (and I rep for the companies you list).  I'll drop you a PM on the companies I recommend giving a try.