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Will an umbrella liability policy cover me personally on a vacation home which is titled to an LLC where I'm a Member & Manager

Tucson, AZ |

I have an existing umbrella liability policy with the insurance company that provides my homeowners and auto policies. We recently purchased an additional property insurance policy from the same company for a family vacation home that is titled to an LLC where the family (including me) are members and I'm also the Manager. The insurance agent recommended that the policy be issued to me as the named insured with the LLC as an "additional insured". In the event of a liability-type lawsuit involving this vacation home am I at additional risk personally with policy in my name and would my existing umbrella liability policy be applicable to this LLC-owned property?

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Attorney answers 2

Best Answer

First and foremost, read you umbrella policy and confirm that it covers your liability with respect to properties other than your primary residence. The insurance agent gave you wise advice about you being listed as an additional insured on the policy covering your vacation home. This policy should cover the person or entity who is liable. In the event of a lawsuit, it is likely that your, your LLC, or both will be named as defendants. If both the LLC and you are named insured, at least, you will not have to expect issues with your insurance company, such as your carrier trying to deny coverage to you personally by arguing that the liability is solely your and not the LLC's, and thus you not being covered. Being named as an additional insured will not create liability for you personally.


The LLC must be an additional named insured on the policy, or the assets of the LLC are at risk in any case involving liability related to the property.