All Forum Posts by: Tim Norris

Correct, at least in my opinion! : )

Nope...former owner is named as an additional insured, relative to only the protection afforded by the liability coverage. They are not named as a "loss payee" (which would allow them benefit under the property coverage)...

Sure...this is a re-post, but I wrote a piece a few years ago here:

http://www.nreinsurance.com/docs/Insurance-Issues-for-the-Sub2-Deal.pdf

My opinion only, but has been successful for us for years. I think it's saved on BP as an article, too...

This is a re-post, but if you haven't seen it, I hope it helps:

As it relates to asset protection strategies, think of the work you do with a legal adviser who, upon considering factors such as net worth, estate planning issues and taxation will offer advice regarding entity and ownership issues. I believe this is your "castle walls and moat" around you/yours. Think of the liability insurance as the "archer in the watchtower". The entities you create (LLCs, trusts, etc...), work symbiotically with the insurance coverage. How much is enough? Who really knows, but keep in mind that your "personal exposures", such as your vehicles, home, etc...(assuming you haven't exorcised ownership via trust, etc...), are/should be segregated from your business exposures.

All that stated, I carry $500k on our personal vehicles and personal liability (homeowner), and $3MM in a "personal" umbrella. Frankly, the umbrella, at $230/year is worth it at that limit. We (partner) carry $1MM over the properties we own via LLC. No "business" umbrella. Are these limits sufficient? Again, who knows, but they are in my mind, at least. Statistically they are, as most liability claims are under these amounts.

Really, your asset protection strategy should start with a versed attorney, include your CPA, and possibly your financial advisor. Figure out how to own/control what you have, then make a call, in your opinion, how much insurance is enough. Hope this helps!

Tim

Many personal umbrella policies have "business pursuit" exclusions, so don't depend on one to cover liability of/for your invesment locations, unless the agent/adviser has provided one of the few that actually do provide such protection. That stated, some points to ponder when considering commercial and/or personal lines coverage:

http://www.nreinsurance.com/docs/Reasons-Why-a-Commercial-Policy-Is-Better.pdf

Hope it helps...

This is a re-post, but if you haven't seen it, I hope it helps:

As it relates to asset protection strategies, think of the work you do with a legal adviser who, upon considering factors such as net worth, estate planning issues and taxation will offer advice regarding entity and ownership issues. I believe this is your "castle walls and moat" around you/yours. Think of the liability insurance as the "archer in the watchtower". The entities you create (LLCs, trusts, etc...), work symbiotically with the insurance coverage. How much is enough? Who really knows, but keep in mind that your "personal exposures", such as your vehicles, home, etc...(assuming you haven't exorcised ownership via trust, etc...), are/should be segregated from your business exposures.

All that stated, I carry $500k on our personal vehicles and personal liability (homeowner), and $3MM in a "personal" umbrella. Frankly, the umbrella, at $230/year is worth it at that limit. We (partner) carry $1MM over the properties we own via LLC. No "business" umbrella. Are these limits sufficient? Again, who knows, but they are in my mind, at least. Statistically they are, as most liability claims are under these amounts.

Really, your asset protection strategy should start with a versed attorney, include your CPA, and possibly your financial advisor. Figure out how to own/control what you have, then make a call, in your opinion, how much insurance is enough. Hope this helps!

Tim

Find coverage that has no or a very short "minimum earned premium" period. That way, you don't pay for more than you need...

"Excess of normal wear and tear" is not "negligence"...Think negligence as unintentional damage caused by the tenant..things like: candles left burning, stove left on, cigarette on couch, kids stuffing a toy down a toilet, causing the water to back up, etc...

That stated, your comment: "Additionally, the renters liability portion would also be another layer of protection between visitors and guests and the landlord. Injured parties would have to sue the renters policy in addition to the landlords insurance." is spot on, in my opinion.

My 2 cents, at least! : )

This is a re-post, but if you haven't seen it, I hope it helps:

As it relates to asset protection strategies, think of the work you do with a legal adviser who, upon considering factors such as net worth, estate planning issues and taxation will offer advice regarding entity and ownership issues. I believe this is your "castle walls and moat" around you/yours. Think of the liability insurance as the "archer in the watchtower". The entities you create (LLCs, trusts, etc...), work symbiotically with the insurance coverage. How much is enough? Who really knows, but keep in mind that your "personal exposures", such as your vehicles, home, etc...(assuming you haven't exorcised ownership via trust, etc...), are/should be segregated from your business exposures.

All that stated, I carry $500k on our personal vehicles and personal liability (homeowner), and $3MM in a "personal" umbrella. Frankly, the umbrella, at $230/year is worth it at that limit. We (partner) carry $1MM over the properties we own via LLC. No "business" umbrella. Are these limits sufficient? Again, who knows, but they are in my mind, at least. Statistically they are, as most liability claims are under these amounts.

Really, your asset protection strategy should start with a versed attorney, include your CPA, and possibly your financial advisor. Figure out how to own/control what you have, then make a call, in your opinion, how much insurance is enough. Hope this helps!

Tim

If tenant negligence causes the damage, their renters insurance should defend them (and pay for that which was damaged). Burden of proof, however, is on the claimant (you, as the property owner).