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Tuesday, December 29, 2009

Insurance

You need Insurance on the property to go into effect on the day of closing. Hopefully your Real Estate pro’s contacts include a good insurance agent.

Preferably, if you are using an LLC or LLP, the insurance should be in the name of the entity and be paid from the entity's bank account.

If you are going to rent the property out, you need a landlord policy

3 comments:

  1. You said "if you are using an LLC or LLP, the insurance should be in the name of the entity and be paid from the entity's bank account." is it necessary to pay with entity's bank account i think cash can also be paid?

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  2. Sorry about the late reply. Just doing an update and realized I didn't see this question before. Regarding the necessity of paying for LLP expenses from an LLP bank account: My thinking on this is that if I set up an LLP to operate as a business, and if I want that to be taken seriously if there is ever a litigation problem, then I should actually run it as a business, and not combine partnership finances with personal finances. I suggest checking out "piercing the corporate veil" through a search engine.

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