quote:
Wouldn’t having the properties in an LLC and a quit claim deed prevent someone from going after other assets if they’re injured on that property?

not necessarily, but would probably help. if enough $ involved in the claim, and if company is not capitalized enough, you can bet they're going to try to shift liability to you personally. success rate depends on where you live

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Posted by KWL85

Member since Mar 2023

3036 posts

Posted on 5/13/23 at 12:12 pm to Billy Blanks

You 100% need it for your rentals. It pays out if someone sues and wins a case related to your rentals. If little Johnny falls down at your rental, a lawyer wearing a 10-gallon cowboy hat will be convinced it is your fault. You may also need general liability insurance for your flips. I am not sure, but don't think the flips are covered by an umbrella. I do rentals and new construction. My umbrella does not cover the new construction projects, so I keep a separate general liability policy.

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Posted by Klondikekajun

Member since Jun 2020

1437 posts

Posted on 5/13/23 at 9:48 pm to thunderbird1100

So can somebody clarify an umbrella policy vs. a personal liabity policy?

I have a single rental that I want the excess coverage on, but I also want added protection on auto and other potential liabilities...

Does one company have to write everything?

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Posted by Riverside

Member since Jul 2022

8251 posts

Posted on 5/14/23 at 7:46 pm to Klondikekajun

Exactly what you described. It gives you coverage above the primary liability policy limits. Umbrella will also cover you for certain types of liabilities that the underlying policy doesn’t, such as defamation.

Usually it’s cheaper to have the umbrella w/ the primary carrier, but not always. Get some quotes from a broker or agent.

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