Insurance Questions

I am setting up an LLC, plan is to do flipping and hold some. What type of insurance coverage do I need? Hazard insurance on the houses I know; what else? Also do I need some type of insurance for the LLC itself? Hope this isn’t too vague.

Thanks, Betty

I negotiated a liability (most important) & wind/fire (less important in my view) policy for my business as a whole. You & any entities or trusts you do business through should be explicity covered (e.g., named as “additional insureds”). I like high deductibles (makes the insurance cheaper) & high coverage (gives a plaintiff serious incentives to settle).

John Hyre

Thanks John, that’s what I needed. I appreciate the response. Betty

Whether the buyer/flipper of a property is you, personally or an LLC, doesn’t make a difference in the cost of insurance or how you buy insurance. Just the “Named Insured” who has legal title to the property has to be the one buying the insurance and shown on the insurance policy.

The key to remember is who has an “insurable interest” here. Your LLC has the insurable interest, as it is the one taking title to the property, no need for you to be listed too - you have no insurable interest in your own name.

Finally, no to your question of additional coverage for the LLC. You have nothing at risk - no products, no physical work your doing on behalf of others, no consulting either. Your buying a piece of real property to re-sell, ordinary Landlord Policy or a Dwelling Fire policy will do.

E-mail me if you have further questions.

Dear Tom,

Thanks for the response. I will e-mail you when I am ready. Appreciate the help. Betty