How can a landlord lose everything and what can he or she do to protect themselves .I have learned some about putting properties into their own llc's and I understand you can get an umbrella insurance policy as well to help cover yourself in case of damages .
@Gunnar Linden here are your layers of defense:
1.) Run a good business: keep the property in good repair, reply to repair requests promptly. This eliminates the source of most lawsuites
2.) Have good paperwork - in most States you can get very evolved lease forms to fill out, stay away from hand crafted (attorney or not)
3.) Your landlord owners policy
4.) Umbrelle insurance
5.) LLC's and entities
The last one is often a bit of an overkill if your net worth is less than 7 or 8 digits. Watch Brand Tunrer's video about LLCs on YouTube.
Thank you Marcus, I am getting ready to rent out my first residence and invest in another property soon. I appreciate the feedback.