Insurance for rental properties
I am in the process of purchasing an investment property with lease/option set up. What kind of insurance do I need on top of standard homeowner insurance? I want to insure that I am not liable for any mishaps on the tenants part. Same goes for a Rental property I am purchasing and setting up for section 8. Suggestions and past experiences with these scenarios would be greatly appreciated.
Sure be nice for someone to jump in on this string. I'm own 7 section 8 properties and have no answers for you. I too am searching for an old timer to shine the light on this subject. I have been told horror stories that make this a very important matter. I tend to be a minimalist as a landlord, however this might not be the place for that attitude. I am having my insurance guy who is also an investor check into this, I hope to have something to share soon. You know, one thing I have been investigating is splitting the company every so many houses. The taxi companies do this all the time to keep the lawsuits from shutting down an entire company. I hear they incorperate every cab as it's own company. I am not an attorney, but, so far everyone I have talked to including my CPA says this sounds like a good idea in addition to homeowners. I am not going to do every house, but I am looking at groups of 4-5 properties. The only downside I can find so far is the cost of running additional companies ie seperate articles & declaration fees, tax proccessing fees and such. I have worked very hard to get this far...the thought of some scammer taking everything away makes me sick. We need more input people, anyone???
Gtrzndrums
Not knowing what is covered in your policy makes it hard to give direction.
I would suggest setting your business up under a LLC for greater protection.
John Michael
I personally have found out, thru experiance, that you get the multi-rental . This is a $1mil policy and it is only 650-1200 per yr. for a 2-4 family and it covers the tenant that wants a free ride. The ins co will fight for you and himself when things go wrong. It is the ins co's duty to fight for his and your interest. All it yakes is for 1 tenant to file a clame and win because your policy wasn't enough to put you on the street.