We did get a couple of responses from lenders stating that our insurance lapsed. I told them at that time we changed insurance companies and had the policies changed to reflect the LLC for financial reasons. We sent them a binder and nothing has been said since. That was about 6mos ago.
As far as the DOS cluase nothing was ever mentioned.
Having used the same insurance broker (and companies) for about fifteen years, it’s time to upgrade into an “Investor’s Policy.” Rental properties, mobile homes, umbrella liability, etc. are currently all separate policies. Working in a corporation and LLC’s and holding properties in Land Trusts complicates it even more.
Who do I consult for what I need and what should I expect? Thanks, again.
We work with a commercial insurance broker which saved us 60% over our previous policies. We did transfer all properties into the LLC first and the insurance is written in the LLC’s name.
Talk to your local apartment owners to find a good commercial insurance broker.
BTW- Even though the property is in a trust the beneficiary is still the LLC or corp. That is who would be insured.
I thought if you changed the insurance to be in the LLC’s name, the insurance company sends a copy to the mortgage holder. Since this violates the DOS clause, they could call the loan due. How do you handle that?
I currently have properties in trust, and I transferred beneficial interest to my LLC. I’m just wondering about your situation and the lower policies!
I think that for property held in a Land Trust, the insured party is the Trust itself and the Trustee is named, not the holder of the Beneficial Interest. Remember that transferring property into a Land Trust is specifically permitted by federal law - the mortgage company cannot even consider calling the mortgage.