Anyone benefited from the liability protection afforded in an LLC

3 Replies

Hello BP members,

I am considering placing my rental property into an LLC for liability protection and dropping my umbrella insurance due to a spike in the rates and the fact that we don't own an automobile.

As I am learning about the protection from an LLC, I am learning that there is a lot to it (i.e. what states to file the LLC due to the protection they provide, like Wyoming or Alaska as examples of being better states for an LLC protection and anonymity as well as creating a Master LLC to place an LLC for each property into to distance myself from the property).

Any landlords been protected from a past lawsuits from tenants or others in an LLC where care was not given to the state filed in or creating additional separation from the property through a Master LLC?


Thanks,

Scott

@Scott B. with one property (or a couple), it seems like 2 LLCs in different states and all the fees that go along with it - even if you do it all yourself sure sounds like a lot more money than your umbrella insurance probably costs. Plus, I find it hard to believe that a small rental company (you) would truly protect the owner (you) from being sued. Even if you did everything right, the suit would probably name the landlord (you)... and even if you win; you’ll still be fighting it. Insurance basically helps all this so you can sleep at night and not worry about any of it.
@Scott B. I work in insurance and have had this question a number of times. Even if you don’t own an automobile you can still attain a very reasonable umbrella policy premium. . If you’re interested, I would be happy to take some time to explain how you can keep the coverage amount you currently have, but decrease the premium you pay. I will send you a direct message with my information.