Proper Way to Insure Home Owned by a Corporation

[AZDave]

Single family dwelling owned by a S corporation. The majority share holder, president of corp, will make this his permanent residence. Proper way to insure?
A. Write a dwelling rental policy in name of corporation and separate renters policy in the individuals name for his personal property.

B. Write a homeowners policy in name of individual and list the corporation as additional interest.

Note. Individual owns two pit bulls. Plan B leaves me with three companies that will exclude animal liability. But all three companies do not allow a corporation to be the owner of the property. They will allow an LLC or trust, but not an INC.

Not sure why - must have to do with extending the personal liability to the corporation.

Would A be the proper way to insure this anyway?

Your input is appreciated.

Dave

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Update. USAA took this one on in the individuals name, with the pit bull dogs, and named the corporation as additional interest.

Anyone with pit bull dogs, please call usaa for your homeowner insurance needs!

 

[bobson]

Single family dwelling owned by a S corporation. The majority share holder, president of corp, will make this his permanent residence. Proper way to insure?
A. Write a dwelling rental policy in name of corporation and separate renters policy in the individuals name for his personal property.

B. Write a homeowners policy in name of individual and list the corporation as additional interest.

Note. Individual owns two pit bulls. Plan B leaves me with three companies that will exclude animal liability. But all three companies do not allow a corporation to be the owner of the property. They will allow an LLC or trust, but not an INC.

Not sure why - must have to do with extending the personal liability to the corporation.

Would A be the proper way to insure this anyway?

Your input is appreciated.

Dave

----------

Update. USAA took this one on in the individuals name, with the pit bull dogs, and named the corporation as additional interest.

Anyone with pit bull dogs, please call usaa for your homeowner insurance needs!

What happens if the pitbull attacks someone and the injured or dead person's family sues the corporation?

 

[Milkman1265]

shouldnt it be the other way around? named insured always the "main" deed owner and AI for the owners of the corp?

 

[djs]

Solution A was the correct answer here.
Have the 'resident' get a renters policy to cover his liability with the dogs.

The other option would be to setup some sort of land contract deal so the resident has a financial interest in the home (outside of a casual business interest). This gets muddy though. Solution A would have been better.

If USAA is aware of this and you can document it, then you are good. Not sure the corporation actually qualifies for a USAA policy though

Dan

 

[AZDave]

Solution A was the correct answer here.
Have the 'resident' get a renters policy to cover his liability with the dogs.

The other option would be to setup some sort of land contract deal so the resident has a financial interest in the home (outside of a casual business interest). This gets muddy though. Solution A would have been better.

If USAA is aware of this and you can document it, then you are good. Not sure the corporation actually qualifies for a USAA policy though

Dan

That was to my surprise Dan. According to insured, the dog issue was not even a question. He had his previous home covered under them currently - so they don't ask or don't care. The policy will be issued to named insured individual with the INC as additional interest - according to the insured. Advised of the dog situation, corporation problems and I am out.

I proposed A also, especially with the dog situation. But am really that I'm not on this risk.

Thanks for the help here.

Dave

 

[djs]

Sounds like you know as well as I do, getting the policy isn't the issue. Getting a large loss paid for your personal property is where the problems begin.

Odds are, it will never be an issue, but, in the event of a large claim, good luck to the non-insured named insured. The house will get covered, its the personal property (and the dogs) that may be at risk.

Oh well, NEXT!

Dan

 

[Milkman1265]

Djs and others,

now if named insured is corporation, and the definition is,

name insured is it's owner, partners, employees etc... why do you need to list owner of the corp as AI?