Is $500K too low of a liabilliy limit?

[Jacob P.]

Hi all, we have 2x  2 family properties in Brooklyn. Both worth over $1Million

We've always been insured for $1M in liability.

Our broker presented an option for insurance for one property that would be $500K.

Do you think we'd be at risk with this level of coverage? When someone goes after a landlord, is there a certain range that settlements typically fall within?

[Kevin Koone]

Jacob, I'm in the business so take my answer with that in mind.  Buy as much liability as makes sense.  Usually the difference b/t 500k and 1 mill is pennies really.  I'd ask for the higher limits and honestly I'd ask for the highest he can provide on the policy.  Especially if you don't have an umbrella in place.