In the end, it cancels out any benefit.Loss of Key Homeowner BenefitsIf you sell your home to an LLC or S-Corp, you’ll lose:$250k/$500k capital gains exclusion on selling a primary residence.Homestead exemption on property taxes.Owner-occupied insurance rates, which are cheaper than rental insurance.Substance Over FormIn tax law, the IRS looks at the substance of a transaction, not just the form.

D.FCheck with your insurer, and adjust accordingly.

This is our boilerplate language:Insurance: Tenant should obtain a renters’ policy of insurance on their personal property.

I’m curious to hear from private real estate investors who’ve faced unexpected insurance claims and were protected by an umbrella insurance policy.We often see discussions whether investors should use an LLC or an umbrella insurance policy.

I have landlord policies for my rental properties in TX and AL states, but I am not able to get an umbrella policy form my current insurance company, because I do not have car insurance and primary residence in US, as I am not a resident in US.

Having a hard time keeping insurance on the house though.

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

Yes, I require renters insurance.

Instead, an umbrella insurance policy may be a more cost-effective alternative for now.

The home will need some work, but I am excited about it.I would appreciate any recommendations for a reasonably priced insurance company for the unit while I am rehabbing it.