Expert: Tim Norris - 2/15/2011

Question
My two siblings and I inherited my mother's home upon her death last year.  One or more of us want to keep the home as a vacation home.  However, we don't want the home to be at risk should one of us be sued for activities unassociated with the inherited house (for instance, my brother is a doctor and could get sued).  State Farm is currently who we have Homeowners Insurance from (it is classified as a vacation home).  However, State Farm indicated that they would not cover it if it was owned by an LLC.

The house is still an estate asset until we can determine the best way to own it.  Given that State Farm won't insure it if we own it through an LLC, it is looking like we might have to own it under our names (not desirable).  Do you have any suggestions?

Answer
There are carriers (many) that will insure the property at a fair rate, even when owned by an LLC.  Don't let the insurance company determine/dictate the most appropriate manner to own it, just because it doesn't meet "their guidelines".

Happy to help...  If you'd like, use this link to get me the info, and I will take a look:   http://www.formstack.com/forms/NREIG-Proposalrequest

Tim Norris