If the property deed lists a legal entity or specific legal arrangement as an owner, it should be added as a Legal Entity Named Insured. This commonly includes Limited Liability Companies (LLCs) and Trusts.
Limited Liability Companies (LLCs)
To qualify as an eligible entity, an LLC must meet all of the following requirements:
- Deed Status: Must be listed on the property deed.
- Ownership: The owner of the LLC must be an insured person on the policy and/or their spouse.
- Property Use: The LLC cannot be used for commercial business purposes on a full-time, part-time, or occasional basis (residential rental/home-sharing is permitted).
- Policy Limit: Maximum of one (1) LLC per policy.
Trusts
To qualify as an eligible entity, a Trust must meet all of the following requirements:
- Deed Status: Must be listed on the property deed.
- Purpose: Must exist solely for the purpose of holding personal property.
- Property Use: Cannot be used for commercial business purposes (residential rental/home-sharing is permitted).
- Multiple Trusts: A policy may list more than one trust. The primary trust is designated as the Legal Entity Named Insured, while a secondary trust can be listed as an Additional Insured (provided both meet all eligibility requirements).
Non-Resident & Professional Trustees
- Non-Resident Trustees: Extends premises liability coverage arising from their legal association with the home. It does not extend coverage to the trustee's personal property.
- Professional Trustees: Do not list paid professional trustees (e.g., an attorney or lawyer managing the trust as part of paid employment). They must rely on their own professional liability coverage.
Coverages: Legal Entity & Individual Designations
When designating individuals associated with a Legal Entity, use this guide to select the appropriate designations–subject to policy terms, conditions, and limitations).
| On the Deed | Resides in Home | Correct Designation | Coverage Provided |
|---|---|---|---|
| Yes | Yes | Human Named Insured | Full policy scope (Coverages A–F) |
| Yes | No | Additional Insured | Dwelling, Other Structures, and Premises Liability (Coverages A, B, Premises E) |
| No | Yes | Other Household Member | Personal Belongings and Liability (Coverages C, D, E, F) |
| No | No | No Coverage | Ineligible for coverage under this policy |
For more information regarding other insured parties, including legal entities, additional insureds, other household members, and more, visit Insured Parties.
The above is meant as general information. This information does not modify any provisions, limitations, or exclusions expressly stated in any insurance policy. Descriptions of all coverages and other features on this page are necessarily brief; in order to fully understand the coverages and other features of a specific insurance policy, we encourage you to read the applicable policy. Whether an accident or other loss is covered is subject to the terms and conditions of the actual insurance policy or policies involved in the claim. References to general claims handling steps, average or typical premiums, amounts of losses, deductibles, costs of coverages/repair, etc., are illustrative and may not apply to your situation.
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