I am assisting a friend who recently inherited several boutique office buildings with tenants. These properties are held in name only and not LLCs. Can someone please explain what types of insurance would be needed to be properly protected with this type of ownership arrangement?
@Aubrey P. The insurance policy structure that correctly insures the buildings would not be different for a name only owned property compared to one in a llc, etc.
The main difference is you would typically carry a higher liability limit on personally owned assetts than assets in llc's, etc.
The increased risk is having a lawsuit tied to your personal assets. So you would want to advise your friend to buy higher liability limits ($2M, $5M or $10M) depending on the size of the buildings and types of tenants.
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