We write coverage throughout the Northeast and have been seeing these type of increases to the Replacement Cost with most carriers.

They will underwrite based on the debt service coverage ratio.

Most policies give the insurer an “out” to deny coverage if you don’t promptly give them notice of a claim, and even though initially one may think that none of these policies could possibly provide coverage for the claim, the claim could change with the passage of time.

@Jacob Ramsey A type of lender called DSCR (debt Service Coverage Ratio) can fun 30 year loans in an LLC.

If that is the case, you have duplicate coverage.  

This insurance policy typically provides coverage for the structure of the rental property, as well as liability coverage for any injuries or damages that may occur on the property.

(in Detroit this is more substantial)If so, do you think the minimum coverage could qualify you?

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

So, there really aren't any debt coverage ratios here to meet since payment is only contingent on profits and profits to that partner loan are only assessed after income is realized for the conventional debt servicing.

Find one that will allow you to "stack" your liability coverage.