Once in a while my clients will call me to say that they are unable to place insurance on real property after they have transferred the property to an LLC or partnership for asset protection purposes. Some insurance companies will not add legal entities on insurance policies issued to individuals.
I have spoken with some other clients who state that they were able to get insurance for their asset protection entities. Some of these people state they overcame their insurance companies initial refusal to add LLCs or partnerships to insurance policies when they explained that the LLCs or partnerships were formed for estate planning purposes rather than operating a business. Explaining to the company that the LLCs and partnerships are wholly owned by the individual investors and their families shows that they are not intended as commercial businesses.
Some insurance companies have a policy to freely insure LLCs or partnerships which own investment real estate either as the sole policy owner or as additional insured parties. These insurance companies include Auto-Owners Insurance (which insures more that automobiles) and Chubb Insurance.
If you have difficulty getting your current insurance company to insure your asset protection entity try explaining the purpose of your entity ownership or switch to a more accommodative insurance company.