how landlords protect themselves from claims

The simple answer you may thinking of is to form an LLC but there is an easier way

If you own your property in your personal name and you considered an LLC you know this can get complicated for filing taxes and you are not 100% protected under and LLC because if you use personal funds for a rental property owned in an LLC you may have just exposed your personal assets to a claim

THE GAMEPLAN

The simple gameplan for a Landlord is to keep your properties in your personal name but purchase an umbrella policy

An umbrella policy is an additional layer of liability starting at 1,000,000 and you can schedule your properties owned in your personal name on the policy

All you need to do is qualify for the personal umbrella

You must have 250,000 of car insurance liability

300,000 of home insurance liability

300,000 of liability on your primary rental policies

The average cost of a personal umbrella policy can be as low as $1/day

Some companies will limit the amount of rental properties you can schedule on your umbrella

You can never completely shield yourself from being named in a lawsuit because you have no control over what a plaintiff attorney will do

but you can layer in 1,000,000 liability buffers from claims

You can purchase an umbrella for as high as 10,000,000 in most areas

A real estate attorney will tell you to put each property in an LLC

but that takes effort with record keeping and filing taxes

To simplify your real estate portfolio, it is ok to keep the properties in your personal name as long as you own a personal umbrella policy

If you don't purchase an umbrella policy, the liability limit on your rental dwelling landlord policy may not be enough when a claim happens

You can purchase liability limits from 100,000 to 500,000

so on every policy you have you want to get the maximum limit the company offers because the price difference can be as low as $25 from each level of liability protection

What you need to do now

Check your current policies and see how much liability you have

If you have 100,000, raise it to 300,000

Get a quote on a personal umbrella policy starting at 1,000,000

Once you buy an umbrella you will now have 1,300,000 of liability on each property scheduled on the policy

The rental advantage

Insurance and Marketing to help you build a cash flow positive portfolio

insurance

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marketing

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rental report

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