I am closing on my first investment SFR in Philly in 1.5 months, and have decided not to operate with an LLC for this first property. The property is worth 71,500$. Companies wont write me an umbrella policy because I don't have a primary home, and am under my parents auto insurance (not economically feasible for me to go on my own auto due to my young age - 22). I own no other assets (no homes, cars, etc, and only have my stream of income).
Instead of an LLC or umbrella policy, would increasing the general liability on the DP3 policy to 500k or 1 MM be enough? Pros/cons? Is 1 MM overkill? Will this be comparable to having an umbrella insurance policy? Is this enough coverage to provide peace of mind? Thanks!
It has 500K coverage for each occurrence, 500K for personal injury and advertising injury, and 1MM general aggregate.
I think that with no assets you are just about judgement proof. Why go after someone without any assets? No lawyer will take that on a "I only get paid when we get a judgement" basis so you would really have to piss someone off for them to come after you. Having said that, I think the $500k would more than suffice.
Just my opinion. No legal advise given.
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