Real Estate Investor · Skokie, IL · Member since 2016 · 1 post · 0 votes
Hello,
I am a new buy and hold investor in IL, and I recently closed on my first SFH. I have insurance on the property, but I am wondering if its sufficient to bypass the need for an LLC at this point in time. I've looked around the insurance forums and I've found great information, however I am wondering if I can get some feedback/advice regarding my insurance quote below.
Is my coverage sufficient for a SFH from both a liability and casualty perspective?
Additionally, will this insurance provide me with the same level of protections as an LLC?
Insurance Agent · Nationwide · Member since 2014 · 2k+ posts · 1k+ votes
9y
@Julian Semer your Liability limit is only $500,000. I suggest no lower than $1,000,000.
I'm no lawyer, but if this property is in your personal name, and a lawsuit finds you guilty, you will personally will be responsible for any claim over $500,000.
If this property was in an LLC, the LLC would be responsible, protecting your personal assets from the claim.
That's the reasoning behind an LLC. Talk with your lawyer to set it up properly.