Posted by Lyal on October 19, 2004 at 05:56:32:
Earl, I’d get another agent’s opinion. Tell them what you need to do and let them figure out how to do it.
Lyal
Catch-22 on LLC and commercial umbrella policy - Posted by Earl
Posted by Earl on October 07, 2004 at 09:08:06:
Ray, Garrett,
I have a question on how to set up the insurance on a rental property. I live in Florida.
I know many times you’ve recommended that the named insured on a policy should reflect however the property is titled, for example an LLC. I’m working on modifying my insurance policy on my rentals to show my LLC as the named insured, as you recommend.
But my problem is the agent is claiming it’s pointless to do that. He is claiming that a carrier will not provide liability insurance to a corporate entity such as an LLC, and therefore I will no longer qualify for my commercial umbrella policy, which requires a certain minimum liability ($300K) on each of my rentals. He is claiming I’m better off leaving the policy as it is, with the discrepancy between the named insured and how the property is titled.
So to me that’s a catch-22. I’m being told that if someone lists their LLC as the named insured on their policy, they won’t qualify for a commercial umbrella policy??? Is that true??? And if an LLC is the named insured on your rentals, do you even need an umbrella policy any more?
How do you get around that? Could someone list the LLC as the named insured and themselves as the additional insured, so the carrier will provide liability insurance? If so, is that liability insurance extra, and will you pay out the nose for that?
As always, thanks!
Earl