How to Get the Right Insurance for Entities and Land Trusts

In this episode of Coffee with Carl, attorney Carl Zoellner, Esq. explains how to properly insure your entities and land trusts.

Insurance… are you fully covered? 

So, there are always lots of questions involving insurance, especially when we’re talking about land trusts

Quite frankly, this is one of the more complicated questions I get because there really isn’t a clear-cut answer. 

When we look at insurance, the general rule is to name the primary insured based on who the title owner of the property is. What makes land trusts so tricky is that not many insurance companies know much about them. 

How To Insure Land Trusts & Entities the Right Way

Your land trust has to be a named insured under your policy and, in addition to that, you should add the LLC as an additional insured as the beneficiary. 

You’d then list anything or anyone apart from that, whether it’s any other beneficiaries, LLCs,  individuals, or any other variations. 

As a general rule, normally, the titled owner is the insured on the property. However, you have to work with your insurance company to be able to make sure that your properties are all insured adequately. 

And if they can’t help, we will. If you’re an Anderson client, we’ve got referrals for insurance agencies that regularly set up land trusts. 

Most of the complications arise from the fact that not all insurance companies will work with land trusts and a lot of them may not really understand them.

The Takeaway

You’ll want to shop for insurance companies, especially if land trusts are a significant portion of your investment portfolio.

As I said, if you’re an Anderson client, we do have some insurance companies that we work with that do know how to work with land trusts and I’d happily recommend them to you. 

Mainstream insurance companies typically don’t have the knowledge or expertise to deal with the challenges of protecting property owned by trusts and LLCs. 

But the key thing to note is that your land trust has to be a named insured under your policy. 

Please take advantage of all of our free content out there. If you haven’t looked at her videos yet, there are great episodes of Toni Talks that are out there where she joins many various professionals that work at Anderson and they go through and answer your pressing questions. 

If you’d like to speak to someone about your specific investing strategy and how to make sure you’re operating your investments as profitably as possible, I highly recommend taking advantage of a free Strategy Session with one of our Senior Advisors. During your phone consultation, you’ll get custom and personalized structuring for your portfolio to align with your individual goals. It’s a $750 value, but completely free for our readers. You can schedule online or by calling 888.871.8535

Until next time, catch you on the next episode, and happy investing.

 

Watch as Carl breaks down how to properly insure your entities and land trusts.

 

Resources mentioned in this video:

 

Got an idea for a future Coffee with Carl? Send it to Carl at cwc@andersonadvisors.com.

 

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