LLC or individual

[Lilian1463]

Hi, I'm new, I would like to know the risk of open my property under my own name, or if I have to create a LLC,  airbnb cover insure properties if you are  a LLC? Thanks for your help

[Paula]

Hello @Lilian1463, great question.

I’m reaching out to some of our experienced hosts to see if they'd like to share their thoughts on this. @Nash-Cottages-LLC0, @Kitty-and-Creek0, @Karen114 and @Guy991 

Regards,

[Karen114]

Hi @Lilian1463  Yes, Aircover will cover you if you are an LLC, however I would not bank on Aircover.  You should have your own liablility policy on the property designed for short term rentals.  Your regular homeowners will not cover you. 

I personally don't own any of my investment properties in LLC's .  Any competent lawyer can track you down.  Also,  any competent lawyer will go after the low hanging fruit and that is your insurance policy. 

[Kitty-and-Creek0]

@Lilian1463 @Karen114 @Paula 

@Karen114 Stated it quite clearly. Personally,  I would recommend that you get maximum liability coverage with your business insurance policy. Your insurance agent can be a wonderful resource to make sure you are properly protected. 

My property is in a trust, so I don't own anything, the trust does. This will avoid probate, in event of my demise.  I also have an S corporation  for one of my businesses; which is, in that case, also advantageous tax-wise. We decided it was a better choice for us than an LLC.

A good paralegal can recommend appropriate reference material to you, and you might check with Nolo Press for an overview. Various states have different procedures, so make sure to get good advice, no matter what you decide. Everyone's case is unique. 

Best of luck with this excellent question, and please check back with the community when you have made a decision.

[Nash-Cottages-LLC0]

@Lilian1463 Let us add another perspective. We do have an LLC and only have one property so far. We have been very up front with our insurance property and have the necessary business coverage, as @Karen114  noted. 

Hope another perspective helps!

Judy