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Updated over 4 years ago on . Most recent reply

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45
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Edward Moore
  • Flipper/Rehabber
10
Votes |
45
Posts

Investor to carry insurance?

Edward Moore
  • Flipper/Rehabber
Posted

I am partnering with an agent to start investing in flips. The plan is for me to be the GC on these projects. 

My question is, because the GC (me) and the subs will all have insurance. Does our investment company the LLC need to carry additional insurance on each property?

Thanks

Most Popular Reply

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147
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125
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Sue Hough
  • Developer
  • Chicago IL
125
Votes |
147
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Sue Hough
  • Developer
  • Chicago IL
Replied

@Edward Moore you most definitely need insurance for the property which is held in a separate entity. Your liability insurance as a GC does not cover the building itself, the land and any claims which happen at the home ie; a child walks by and falls on a rusty nail and claims you are negligent, a contractor injures himself claiming it was the owner of the home's fault, the buyer of the home claims the LLC was at fault and misrepresented some fact. The common thread here is the word "claim". Anyone can sue you for anything irregardless of fault and need the insurance to protect yourself.

Good luck!

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