Liability Insurance Numbers
Hi All, I have an LLC and 4 SFH that I rent out. My attorney suggested I have at least 1 million liability on each rental. I'm wondering what others are covering their properties at. I think I only have 100 thousand now on each but my tenants have been awesome. However, anything could happen so I don't want to be under insured. What think ye?
Comments(0)
My suggestion would be an umbrella policy...it would cover all of them under one policy. The cost is around $200-300 for $1M.
There is usually minimal increase in premium per unit between $500k and even $2 million. Beyond that, an umbrella is your best value. The cost varies by number of units, and is really a great deal if you also need coverage over and above underlying coverage on vehicles that your business may own...[ Edited by norrist on Date 12/25/2004 ]
I personally utilize the Nevis LLC strategy and COMBINE it with what I consider "sufficient" liability insurance...
I personally utilize the Nevis LLC strategy and COMBINE it with what I consider "sufficient" liability insurance...
Tim,
I am assuming that an umbrella policy would not be effective when there would be multiple entities insured. For example you have Rental LLC1 and Rental LLC2 each holding separate properties.
Frogger,
, then name the LLCs as Loss Payees and Additional Insreds respective of the property(ies) they own. Then, one umbrella could serve for all. A little more paperwork, but do-able...
Each entity would need it's own umbrella. However, there is a way to name one insured (i.e. your "management company"