Is your rental property insurance ENOUGH?
Huge question. Just like your health insurance, if something catastrophic happens, you want to be covered, right! Same with your rental property. Let’s assume you have a fire in your quadruplex and a Tenant dies. That’s bad. Real bad. The family sues. Who do they sue: YOU, that’s who. Ouch. Did you know it costs $25,000 per day to have a trail plus prep expenses? Don’t forget there are 2 Lawyers. Therefore, average lawsuit will cost $50,000 per day plus prep expenses. Says my Real Estate Attorney Dax Watson. (great guy, hire him).
When you buy a rental, your Insurance Agent will sell you a personal or a commercial liability policy. You had better take both. The commercial liability policy will take precedent over the personal. The personal is just in case.
Your Insurance Agent will offer you both a personal umbrella policy and a commercial umbrella policy. You had better take both.
The Judge awards the family 2.5 Million. Here is how the payout would work:
You bought:
Commercial Liability Policy of 1 Million per occurrence and 2 Million annual
Commercial Umbrella Policy of 3 Million
Commercial Liability Policy would pay the first 1 Million
Commercial Umbrella Policy would pay the second 1.5 Million
If you didn’t have the Commercial Umbrella Policy, your Business and its assets would owe 1.5 Million. Are you starting to get the drift?
Every time you buy a new rental property and put it into your portfolio, call your Insurance Agent and reassess your risk level and policy coverages.
If you need to sell at a www.5kflatfeelisting.com, just call or see us online. Look forward to meeting you.
Buyers get: Sellers get:
FREE Home Inspection 5k Flat Fee Listing
FREE Termite Inspection FREE Home Inspection
FREE Home Warranty FREE Termite Inspection
Best,
Geoff Nowlin, Phoenix Realtor
480-466-3737
nowlin.geoff@gmail.com
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