Insurance should cover it right?

Question

Hi Friends, I recently got my first rental. now I have liabilty for it, but should i place it under an umbrella coverage? what do you guys think?

Sam Shueh · Answer

Absolutely.

Account Closed · Answer

Every insurance salesman will tell you to insure yourself to the hilt.

It depends on how many properties you have. Generally, if you own only one house, you insure that house for the standard amount of maybe $1 million and if you want to increase it to $2 million then you would only pay the additional insurance for that policy.

But, lets assume you have 5 rental homes and you don't want to pay the additional premium to increase every policy to $2 million. Then, you would buy an umbrella policy where you pay for the additional $1 million only 1ime.

It also depends on what your net worth is. If you don't have a high net worth and you are on a tight budget then don't worry about increasing your policy limit not an umbrella policy. The chances of your getting sued and losing more than a standard policy covers is slim to zero. Most attorney look at only the policy limit with the exception of rare cases.

Javier Rosales · Answer

thanks for the good insight. Im on the way to purchasing my second. on my first insurance poilcy i have it at 300,000 thousands. i wanted 1 million. the insurance agent recommended the 300,000