Updated over 10 years ago on . Most recent reply
Installment # 7 Insurance Issues for The Real Estate Investor - LIABILITY Continued
LIABILITY - Continued
Always carry as much liability protection as you can afford. As a minimum, you should carry $1,000,000 per occurrence. The larger your portfolio, the more liability protection you should have. Surprisingly, there is a minimal premium charge in most cases to double your protection. An umbrella policy is a method to provide liability coverage beyond the standard $1,000,000 or $2,000,000 limits.
A basic formula that I learned from one of the top loss prevention educators in the industry is this:
Make your insurance policy (Liability) more attractive than your Current Net Worth, Perceived Net Worth and potential Future Net Worth.If it is not a Million yet, make that your minimum starting point and grow from there.