Investor · Member since 2021 · 131 posts · 100 votes
To the group,
I am curious as to what the concensus is regarding the amount of liability insurance one should carry on a rental property? I happened to speak with a real estate attorney recently who had mentioned that the bare minimum they would recommend for each property is $1MM per occurrence and have at least a $5MM umbrella policy. However, another attorney had mentioned having $10-$20MM dollars worth of coverage per property, which I thought was astronomical.
I would appreciate any seasoned real estate owners or RE professionals to chime in. What is a good rule of thumb for recommended coverage regarding liability insurance for both SFH rentals as well as Multi unit properties.
I am curious as to what the concensus is regarding the amount of liability insurance one should carry on a rental property? I happened to speak with a real estate attorney recently who had mentioned that the bare minimum they would recommend for each property is $1MM per occurrence and have at least a $5MM umbrella policy. However, another attorney had mentioned having $10-$20MM dollars worth of coverage per property, which I thought was astronomical.
I would appreciate any seasoned real estate owners or RE professionals to chime in. What is a good rule of thumb for recommended coverage regarding liability insurance for both SFH rentals as well as Multi unit properties.
Thanks!
For me personally, each rental 1m underlying and 2m umbrella. I'm more concerned with a liability claim from an auto accident than from a rental property. As your assets and networth grow then so should the umbrella coverage.