Wondering if I should create an LLC and transfer my rental house to it.
The major benefit as I understand it would be a layer of protection from lawsuits.
The house is paid for so no problem with a mortgage.
The main concern is regarding insurance:
We are on the Texas gulf coast and insurance rates are going through the roof and there are some homeowners who are even finding coverage.
- Will an LLC make it harder to get coverage - or reduce the pool of available underwriters?
Finally, I'm not sure how to schedule the transition as a lot of moving pieces:
- Form the LLC
- Transfer the title to the LLC.
- Cancel the existing insurance.
- Start a new policy - would be simple IF could get with same insurer but no guarantee.
- Get the new lease signed.
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Alternative thought is get a 1-2 million dollar umbrella policy and leave property in my name.
Please give me your thoughts and guidance.
The major benefit as I understand it would be a layer of protection from lawsuits.
The house is paid for so no problem with a mortgage.
The main concern is regarding insurance:
We are on the Texas gulf coast and insurance rates are going through the roof and there are some homeowners who are even finding coverage.
- Will an LLC make it harder to get coverage - or reduce the pool of available underwriters?
Finally, I'm not sure how to schedule the transition as a lot of moving pieces:
- Form the LLC
- Transfer the title to the LLC.
- Cancel the existing insurance.
- Start a new policy - would be simple IF could get with same insurer but no guarantee.
- Get the new lease signed.
----
Alternative thought is get a 1-2 million dollar umbrella policy and leave property in my name.
Please give me your thoughts and guidance.
Statistics: Posted by Edreaux — Sun Oct 06, 2024 6:24 pm — Replies 3 — Views 248