Why Landlord Liability Insurance is Critical
by Benny Malone
As a rental property owner, I am always trying to cut down on my rental expenses. However landlord liability insurance is an absolute must buy - Never rent out a place before protecting yourself with a solid landlord liability insurance.
The average lawsuit will easily set up you back by a few thousand dollars in legal fees and damage payouts. If severe injuries or human lives are at stake, then your legal bills can skyrocket to hundreds of thousands of dollars. All it takes is one ugly lawsuit to shove you into bankruptcy.
While your standard landlord house insurance may come with a limited liability coverage, it is rarely enough. Personally I will recommend that you get at least $500,000 of liability coverage for each rental property that you own. Many landlords consider the ideal amount to be about $1,000,000.
Liability insurance isn't expensive and you can always push the price down by having a higher deductible amount.
What this means is that your insurance payout will only kick in if your legal costs exceed a certain amount. For example having a deductible of $1,500 means that you will be paying for legal expenses less than $1,500 out of your own pocket. In exchange your insurance premiums will cost you less.
Click here to post comments
Return to Share Your Tips and Advice on Landlord Liability Insurance.