Question About Insurance

Comments(5)

• 
  NewKidInTown319th March, 2009

  I think it is reasonable advice. I think there is a higher probability that you will be involved in a lawsuit steming from an auto accident than from one of your tenants.
  
  After you increase the auto coverage to $300K, ask your insurance agent to quote you a $1 million to $2 million umbrella liability policy.
  
  The idea here is that if the judgment from your auto accident happens to be greater than $500K, the umbrella policy will further protect your assets up to another million or two.

• 
  d_random20th March, 2009

  Thanks Newkid-
  
  Do I need an umbrella if I already have 1M liability on the rentals? Are you saying that I need 2 or 3 million on the rentals?

• 
  smithj220th March, 2009

  d_random,
  
  The cost per thousand for liability is cheaper on an umbrella policy than on a fire policy. Is there a particular reason you have such a high liability as part of your rental policy? And when you say you have $1M on your rentals, does this mean you have one policy covering all your rentals or do you have individual policies with $1M on each?
  
  if you do have one blanket policy, do you find that less expensive? I tried to go blanket with my rentals but found the cost per thousand increased by over 50%. Apart from convenience, what is the benefit of the blanket policy?
  
  JS.

• 
  d_random23rd March, 2009

  smithj2-
  
  I am not knowledgeable enough about the insurance to give you a good answer. I have a liability policy that covers three rentals (one is my personal residence). 1M for all three.

• 
  cjmazur25th March, 2009

  Do you cross name all the other properties as insured on the other policies?