Dwelling Title in Name of LLC

December 10, 2012

Our insured has changed the deed to their secondary dwelling that they are renting to others to the name of an LLC. I understand that doing this is strictly for financial planning purposes and helps to protect the insured's assets. It appears doing this changes the ownership to a business and the owners or members of the LLC would be better served under a commercial policy. We are not sure who the members of the LLC are, but assuming the members are the named insureds, would there still be coverage under the ISO DP-3?

 California Subscriber

The DP 03 defines "you " and "your" as the "named insured" and the spouse if a resident of the household. LLC's can't have spouses; the DP3 is designed for individual ownership, not an LLC. The insured can't have it both ways; if the property has been deeded to an LLC, then the dwelling must be insured on a commercial policy, even if the premium is more. Otherwise, there is no coverage.

This premium content is locked for FC&S Coverage Interpretation Subscribers

Enjoy unlimited access to the trusted solution for successful interpretation and analyses of complex insurance policies.

  • Quality content from industry experts with over 60 years insurance experience, combined
  • Customizable alerts of changes in relevant policies and trends
  • Search and navigate Q&As to find answers to your specific questions
  • Filter by article, discussion, analysis and more to find the exact information you’re looking for
  • Continually updated to bring you the latest reports, trending topics, and coverage analysis