Installment # 6 Insurance Issues for The Real Estate Investor - LIABILITY

[Ivan Oberon]

Let’s start to dive into the next part of your insurance policies.We’ve been talking about Property Coverages, let’s now move on to:Installment #6

LIABILITY:

One of my mentors, Tim Norris, likens Insurance to the archers and knights, which defend your “castle.”Let’s explore this analogy.

Contrary to most opinion, insurance should not be the foundation of an asset protection strategy. Think of your assets, whether personal or business, as the items within your castle that you desire to protect. The legal entities that you create, with the advice and assistance of a legal professional, are the castle walls, the moat, and the watchtower you build to help protect them. What you choose to create is a summation of the needs and issues in which tax, financial, and even estate planning must be taken into consideration.

We then acknowledge that insurance is the archer in the watch tower, or the knights with the boiling oil, that attempt to keep nasty things like liability claims, fire, windstorms and other catastrophes at bay. We all know insurance does not cover everything. The list of exclusions in most policies is more than a paragraph. Likewise, the archer does not hit every target. That stated, the archer and knights (insurance) need to work in conjunction the walls and the moats legal entities) to appropriately protect your “stuff”.