Property Insurance Headaches - Posted by Terry Dunlap
Posted by Terry Dunlap on April 02, 1999 at 09:50:22:
Recently a friend and I set up an LLC to buy and sell property.
As part of the closing process, the lender requires adequate insurance on each of the properties. For the longest time, I had been taking out insurance policies under my name on the properties. These policies averaged about $250/house/yr.
However, when my agent realized that I was taking title to the property in the name of the LLC, he said the insurance in my name wouldn’t cover the properties. I needed to find a commercial insurer.
I found three different commercial insurers. They have all come back with policy quotes of $1300 - $1700 per year for both properties!
Is there a way around this commercial insurance headache? One property we intend to keep and rent. In fact, my partner is a tenant in one duplex.
All the other properties we intend to perform cosmetic fixes and resell. Turnaround time expected to be less than three months.
Any suggestions on the insurance issue would be greatly appreciated. In fact, I am closing on a property on Monday, April 5th. I need to straighten out this matter.
Look forward to your helpful advice!