Landlords Policy Question

[SarahLeigh]

Hello Fellow Forum Members:

I am fairly new to the industry and haven't quoted a landlord's policy yet. Who are the best carriers to quote landlord's policies in CA for a residential dwelling? Can the insured be an entity (corporation) instead of an individual or does it have to be quoted as a commercial risk?

Thank you in advance for your help.

Sarah

 

[GXR2]

Try California Mutual

 

[tpowell138]

Hello Fellow Forum Members:

I am fairly new to the industry and haven't quoted a landlord's policy yet. Who are the best carriers to quote landlord's policies in CA for a residential dwelling? Can the insured be an entity (corporation) instead of an individual or does it have to be quoted as a commercial risk?

Thank you in advance for your help.

Sarah

Entity or individual ownership. If your insureds goal is to own JUST own rental they would be okay under a individual ownership.

I always recommend my clients to set up a LLC. A- the liability is not tied to their personal assets. B- In terms of taxes upon ownership transfer (down the road, upon death) the ownership of the LLC can be transferred to a new managing member (most likely a family member) and you will not have to pay the capital gains tax etc..

CIG is your "superior" market.. Travelers, Hartford, Liberty and Deans and Homer for the older buildings.

 

[marindependent]

Good Question. I believe it depends first on the form of ownership. AND who the owners are.

In California setting up an LLC is pretty expensive (minimum yearly cost around $800) - which is different than most states.
Therefore lots of people do not set up an LLC for just one rental property.

 

[stex]

Most standard carriers would decline if the dwelling is tilted under a corporation. CIG's is in deed very competitive and they are pretty easy on brush. Only issue is it's not a CEA partner and it's tough to compete with CEA on earthquake nowadays.