Many real estate investors and property owners form Limited Liability Companies (LLCs) to protect their personal assets. But when a property is owned by an LLC, a common question arises:
Can an LLC get homeowners insurance?
The short answer: No, not traditional homeowners insurance — but yes, an LLC can and should get commercial property insurance or a landlord policy designed for business-owned properties.
This article explains:
- Why traditional homeowners insurance won’t work for LLCs
- What types of insurance LLCs can get
- How to insure a rental property or home under an LLC
- The benefits of insuring your LLC-owned property properly
- How to apply for coverage as an LLC
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Why an LLC Can’t Get Standard Homeowners Insurance
Homeowners insurance is designed for individuals who use the property as their primary residence. When a property is titled under an LLC, the insurance company views the ownership as commercial — not personal.
Key reasons why an LLC can’t use personal homeowners insurance:
- The named insured must match the owner (the LLC, not an individual)
- Homeowners policies exclude business-use risks
- Insurers may deny claims if the property is owned by a business
In short, personal homeowner’s insurance does not apply to investment, rental, or business-owned properties.
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What Kind of Insurance Should an LLC Get?
If your property is owned by an LLC, you should look for:
1. Landlord Insurance (also called Dwelling Policy or DP3)
– Covers rented single-family or multi-unit homes
– Includes liability, fire, theft, and loss of rental income
2. Commercial Property Insurance
– Ideal for short-term rentals (Airbnb), multi-unit buildings, or mixed-use properties
– Offers broader coverage and higher liability limits
3. Business Owner’s Policy (BOP)
– Bundles property insurance and general liability
– Optional for LLCs with multiple properties or businesses onsite
4. Umbrella Liability Insurance
– Provides additional protection beyond standard policy limits
– Useful for high-value or high-risk rental properties
Tip: Ensure that your LLC is listed as the “Named Insured” on the policy.
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Can You Transfer a Homeowner’s Policy to an LLC?
No. When transferring property into an LLC, you must:
- Inform your insurer
- Cancel the existing personal policy
- Apply for a new landlord or commercial policy in the LLC’s name
If you fail to update your insurance and a claim occurs, the insurance company could deny coverage.
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Benefits of LLC-Owned Property Insurance
- Shields personal assets from property-related liability
- Provides proper legal protection for landlords
- Offers rental income loss coverage
- Ensures compliance with mortgage lender and HOA requirements
- Enhances credibility with tenants and partners
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How to Get Home Insurance for an LLC-Owned Property
- Confirm the property title is in the LLC’s name
- Contact a commercial or landlord insurance provider
- Request a quote using the LLC’s EIN and property details
- Ensure the LLC is the Named Insured on the policy
- Review the coverage types: liability, dwelling, loss of rent, etc.
- Ask about umbrella options if you own multiple properties
Want help forming an LLC and protecting your real estate? FormLLC can help with formation, EIN, BOI filing, and more.
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Final Thoughts
While an LLC can’t get standard homeowners insurance, it absolutely can — and should — get proper insurance coverage through a landlord or commercial property policy.
This ensures your real estate investment is legally protected, your liabilities are covered, and your business operations are compliant.
If you’re transferring property into an LLC or buying new real estate under an LLC structure, work with insurance providers that specialize in landlord and commercial policies.
