Welcome to passive real estate investing, the show where busy people like you learn how to build substantial passive income while creating wealth for the long term.

And now here's your host, Mark Marco Santorelli.

Welcome to passive real estate investing. I'm your host, Marco Santorelli.

And on today's show, we're going to talk about the truth about property insurance.

We get a lot of questions from investors about where to get

insurance, how much insurance, how high their deductible should be, what's covered,

and then there's the always confusing question about replacement cost

versus actual cash value which seems to be debated in perpetuity online in

real estate forums. So I wanted to bring my insurance agent on a guy named

Joshua in Missouri where I'm buying properties right now and I asked him a bunch of

questions about property insurance what's the proper coverage,

how to compare different policies, how much deductible is enough, etc, etc.

And it's really not as confusing as you might think, but it's important to understand what you're looking at and how to compare one policy to another policy.

So, without further delay, we're going to get him on here in just a

moment but before I do I wanted to talk about a listener question that came in

recently and the question was can I put my property in an LLC

after I close with conventional financing? Well the short answer is yes you can

after you close escrow on your property and you take title

you can do whatever you want with your title. In other words if you want to take it

out of your name and put it into your LLC, for example a holding LLC, a limited liability company, you're more than welcome to do that.

Now, keep in mind that lots of mortgage documents, most mortgage documents, have what's called a due on sale clause.

And technically speaking, if you do transfer title out of your name when you have a mortgage on that property and you put it into another entity, you have technically breached or triggered that due on sale clause. And what that means is that if the lender wanted to, they could accelerate the loan and demand that the loan is due in full and payable immediately.

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