If your insurance coverage isn't enough, they could seize the LLC assets, but not your personal assets.Additional thoughts:1.

**DSCR Lenders**: Debt Service Coverage Ratio (DSCR) lenders can be a good fit if your rental properties are generating solid cash flow.

Getting a debt service coverage ratio loan shouldn't be difficult when using an LLC. 

.- Operating Shortfall Coverage: Addressing operational shortfalls during challenging periods.Objectives of Mezzanine DebtThe primary objectives when using mezzanine debt include:- Project Stabilization: Completing renovations, construction, or improvements and then stabilizing the property with 90%+ occupancy.- Interest Rate Management: Buying time until interest rates normalize or decline.

They may even want an appraisal to verify that they have plenty of coverage on their loan. 

Most lenders typically will want the gross rents at least 75% (.75 DSCR) to 100% (1.00 DSCR) of the new PITIA mortgage payment.We offer programs with No ratio's, meaning down to 0.00% coverage.

If you don't, then you essentially have no insurance on the property.But, it's when the lender is notified of the new insurance coverage that will actually notify the lender and then they will trigger the due on sale clause.

They are termed Debt Service Coverage Ratio. 

I don’t think you can get a DSCR loan with 1.01% coverage.

Whether you're a new investor or looking to scale your portfolio, qualifying for traditional loans can be a challenge—especially if your personal income doesn’t meet the strict requirements.That’s where Debt Service Coverage Ratio (DSCR) loans come in as a game-changing solution for real estate investors, providing an easier way to finance properties based on the property's cash flow rather than your personal income.What is a DSCR Loan in Real Estate Investing?