Has anyone REALLY had this happen? Or are we talking about mostly a myth and fear mongering...
you dont get sued for your house you get sued and if you lose a money judgement then the winning side tried to collect and they can record their judgement in the county you own property and if the judgement is in the name of the entitiy vested to that property they can through a LOT of legal work push to get it sold.
reality is pretty rare for average investor.. proper insurance will cover you in 97% chance of any money judgements.. unless your a bad boy or girl and do things intentionally etc ..
Some call it fear mongering, others call it insurance.
A kid on my son's former soccer team was involved in a tragic accident where alcohol was involved and there were fatalities of friends. I hope the driver's family had an umbrella policy. I can't imagine the financial and emotional wreckage without one (on top of everything else they are dealing with).
The fear is mostly overblown. If you have good insurance you are going to cover 99.75 or more % of possibilities. I was an administrator of a town where one of our ambulance drivers ran a light and killed a 16 year old girl driving with her father. That lawsuit settled for $1 million, which was the town liability at that time. It sounds morbid, but there are actuarial tables that estimate what the earnings power is for the person and thus governs settlement structures.
I know its a "generic" term. I've just never heard anyone ACTUALLY losing a house etc. Most people keep insurance etc., but I was just CURIOUS if anyone knew anything different
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.