Poll of largest lawsuit settlements

2 Replies

I wanted to see if anyone would be willing to share what the largest settlements they were involved in as a landlord. The goal would be to try to ascertain the amount of coverage that is needed for my insurance policies.

You should have liability coverage in the 1M - 2M range and require your tenants to have 1M liability as well.

As long as you operate a safe business environment and properly maintain your properties there should be no issues. You should also not allow dead equity to sit in your properties, this will encourage unscrupulious individules to file frivilious and dishonest lawsuits.

I heard of a guy that got a $600k judgment from a number of tenants that got together many years ago.  If memory serves correctly, he was negotiating sex in exchange for not collecting rent and operated poorly maintained units.  Pretty sure if he had an umbrella policy, it didn't pay out for this...

If you are reasonable and are not actively trying to screw people over, it is very unlikely that you would be liable for much.  A $1mm umbrella will cover you for the most part and in a worse case scenario, you might have to cover something, but I don't know that I have ever heard of a judgment of six figures in a landlord case without gross negligence or actively doing something illegal where an umbrella policy wouldn't help you anyways.

In 19 years and more than a dozen tenants and 2 evictions that went all the way to changing the locks with there stuff still in the unit, I have never been sued...knock on wood.