Conveying Property To An Llc: Effect On Title Insurance


In the past, there was a real concern about potentially losing one’s title insurance coverage when transferring a property from an individual to an LLC or other entity owned by that person. Thankfully, beginning in 2006, ALTA title insurance policies cover an LLC to which an individual deeds their property for estate planning, financial reorganization or liability protection purposes if the membership or other equity interests of the LLC are wholly owned by the individual. The 2021 ALTA policies continued the coverage afforded by the 2006 policies.

As to pre-2006 title insurance policies, any individual transferring such property to an LLC would be well advised to contact their title insurance company to have the LLC added to the policy as an insured. Otherwise, the title company could take the position, upon a loss, that the transfer terminated the insured’s original coverage.