Does Your LLC-Owned Property Have the Right Coverage?

Introduction:

Many investors know the benefits of placing rental properties in an LLC, but few check whether their insurance policy actually protects that entity.

Here's the disconnect: you can hold a property in an LLC, but if your policy only lists you personally as the insured, you may not be covered at all in a claim.

1. Who is the Named Insured?

The "named insured" must match the legal owner of the property. If your LLC is on title, it should be on the policy too.

2. Are Additional Insureds Listed?

If you self-manage, act as a guarantor, or involve partners, they may need to be added to the policy for full protection.

3. Does Your Carrier Know About the LLC?

Some carriers won't write policies for LLC-owned properties or will deny claims if the LLC wasn't disclosed.

How to Fix It:

• Review your declarations page and endorsement list.

• Contact your agent and confirm entity alignment.

• Use a policy review service to double-check without legalese.

At Crystal Clear Property Partners, we specialize in entity-property-policy alignment. We help investors catch these disconnects before they become claim denials.