Updated about 10 years ago on . Most recent reply
Umbrella Policy Ammount
What are everyone's thoughts on what would be a good amount of insurance to carry with four single family rental homes?. We have had a $1 million umbrella policy for many years along with $300k liability on each property and I am trying to decide if that is enough coverage to make me feel comfortable or if I should bump it higher. The properties are all good quality in nice areas and we are pretty diligent about making sure we take good care of them so I feel that my risk is relatively low but I am curious to hear what others have to say. Any specific examples of suits that have breached the $1 million mark?
I know I can get additional protection with an LLC but so far I have stayed away from that option mainly just because of the potential difficulty for financing future deals and/or transferring my existing properties with mortgages into the LLC.
Most Popular Reply
Look at prices. Often it is negligible to bump it up. Double or triple the umbrella coverage might only cost 10% more.....reason being it is rarely used and even then, used completely. Just don't go overboard and pay too much to overinsure yourself. I think I have $3 million right now.