2 LLC's Buying Commercial Property - Tenants in Common

[insurance1822]

I have 2 separate entities purchasing a large office complex. (1) of the entities is an LLC holding 60% interest in the new building to be insured, the 2nd LLC holds 40%.

Do I insure this in the name of the LLC holding 60% of the debt on the new building...or both? How do you handle this commercial guys?

 

[jlanier]

Both - majority owner primary insured with minority owner named additional insured. They can work out splitting the premium. Both will need to be named because in the event of a lawsuit they will both be named.

 

[insurance1822]

Thanks! Does it matter if the 1st named insured is the minority owner (they hold 40%...) or is it one of those things that doesn't REALLY matter it's just how carriers prefer.

 

[nyc2phi]

Since both have ownership in the company both should be "named" insured. Most carriers can do this.

There is a difference between additional insured and additional named insured. The additional insured doesn't get all the rights and coverage as an additional named insured.

In this case they should both have named insured status.

 

[cottonland]

Since both have ownership in the company both should be "named" insured. Most carriers can do this. There is a difference between additional insured and additional named insured. The additional insured doesn't get all the rights and coverage as an additional named insured. In this case they should both have named insured status.

^^^^^^^^Exactly^^^^^^^^^^