Gulfshore Insurance > Gulfshore Blog > Personal Insurance > Insuring Homes Deeded Through Trusts & LLC’s: What You Need to Know

Personal Lines Insuring Homes Deeded Through Trusts and LLCsMany buyers in Florida deed their homes to Trusts or LLC’s for tax and/or probate purposes. What these buyers may not know is that they may face higher premiums by going this route rather than personally deeding the property. The reason being, some of the more competitive insurance companies in Florida do not necessarily want to insure properties owned by LLC’s and in some cases, will not insure the Trust depending on who is assigned as a grantor/trustee because it creates a greater liability exposure.

Here’s what you need to know:

Trusts: Most insurance companies will approve Trusts as long as the owner/grantor is also the sole trustee and occupies the property. However, many insurance companies will decline a policy if the owner/grantor assigns another party as trustee who does not live on-premises (i.e. children, other family members, friends, attorneys, Powers of Attorney, etc.). The latter scenario will only qualify for a limited number of insurance companies whom tend to be more expensive.

LLC’s: Limited Liability Corporations raise a red flag for residential insurance companies. Investors can purchase multiple residential and commercial properties under the same LLC creating several avenues of exposure. The few residential insurance companies that insure LLC’s will only do so if said LLC owns one or two residential properties only and no commercial properties. It is important for buyers to understand that they will face higher premiums by deeding their property this way.

Ron Lazarto, CPRIA is a Client Advisor and Partner at Gulfshore Insurance specializing in Private Risk Services. Ron specializes in offering customized property and casualty insurance solutions for successful individuals and their families. Comments and questions are welcome at rlazarto@gulfshoreinsurance.com

Gulfshore Insurance is a Naples, Florida based insurance agency specializing in home and homeowners insurance, car and auto insurance, boat and yacht insurance, property insurance, umbrella insurance, valuables insurance for fine art, jewelry, wine, and more. Navigating insurance requires an experienced and trusted insurance agent who understands your high net worth risks and exposures. Gulfshore Insurance services Naples, North Naples, Port Royal, Park Shore, Pelican Bay, The Moorings, Naples Beach, Marco Island, Bonita Springs, Sanibel Island, Captiva, Fort Myers, Sarasota, and Southwest Florida. We have office locations in Naples, Fort Myers, Fort Lauderdale, and Sarasota.
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