Insurance question

[David Ackerman]

Hi all,

I own 4 properties all in an LLC. I have a $2,000,000 umbrella property for all these properties. One of the properties I bought for cash. I am trying to do a cash-out refinance for that property. All the mortgage brokers are telling me that the property needs to be back in my name for 1 year before they can do the cash-out refinance.

Obviously, the biggest negative of that is that I would have to go 1 year with the property NOT in the LLC. Do you think I should be OK with the $2,000,000 umbrella or is that not enough coverage in case something happens at the one property that is no longer in the LC?

Thnx,

Dave

[Joe Bertolino]

I insure approx 19000 units in the western US and have been in the business for 11 years... I have had 1 claim go into the umbrella limit and zero claims over $3m. Never say never but you should be ok with a $1m policy and a $2m umbrella.