Rental Property Investor · Mt Pleasant, SC · Member since 2017 · 5 posts · 9 votes
I own a duplex with my husband and have been self managing the rentals (one is MTR and one is LTR) under my LLC. I've handed off my LTR to a separate PM and they want to be named on a general public insurance policy for the unit, but truth be told, I feel like I need a solid umbrella policy to cover the MTR and any claims against myself and husband as the owners of the property. Also my LLC is a single member. I'm curious what amount of coverage to shop for?
Anything specific you'd include?
The PM I've hired has a minimum of 100K as a requirement, but would you recommend a higher coverage limit?
Lastly, are there any agents able to help with this in St. Louis, MO area?
Insurance Agent · Dallas-Fort Worth · Member since 2019 · 4 posts · 1 vote
1y
Jessica,
I'd be happy to help you if you are ok working with a Texas agent. Here are my recommendations for you.
Since you and your husband own the duplex under an LLC, with one unit as a mid-term rental and the other as a long-term rental managed by a property manager, having the right insurance coverage is essential.
Your property manager’s $100K liability requirement is low. Increasing it to at least $500K to $1M ensures better protection. Listing them as an “Additional Insured” rather than just an “Additional Interest” will also safeguard both parties.
For the LTR unit, your landlord policy should include property damage, at least $500K in liability, and loss of rental income. The MTR unit requires special attention, as many standard landlord policies don’t fully cover mid-term rentals. Confirm that your policy explicitly includes this type of rental to avoid gaps.
I would highly recommend an umbrella policy. A minimum of $1M in coverage provides added protection in case of major liability claims, though $2M–$5M offers even greater security depending on your situation. Requiring tenants to carry renters insurance with at least $100K in liability also helps minimize risk. If you provide rental or real estate advice, an E&O policy could offer additional protection.