Posted by ray@lcorn on August 09, 2003 at 10:39:28:
You need to get an answer directly from the insurance company on the loss scenario for the structure. The policy will dictate the terms and conditions under which they will pay for rebuilding.
The insurance company also needs to be aware of the difference in the title/mortgage holders. If the LLC is owned by the same individual as named on the mortgage, then there should be no problem. If not, then the insurance policy needs to name the LLC as an additional insured party.
Usually the mortgage lender is named as loss payee, so in the event of a total loss, and assuming the proper designation of loss payee(s), the insurance would pay the lender and any balance to the party that owns the policy.
Bottom line, it is in your best interests (and your obligation) to make sure the insurance company is aware of all parties involved.