Liability Insurance....Do I really need it? - Posted by Billy

Posted by Todd_OH on March 08, 2002 at 07:39:33:

Billy:

You DO NEED IT! If you are going to be sued as a landlord, it will likely be a liability lawsuit.

An extra $45/mo. will not seem like much when you have to pay an attorney $200/HOUR to defend a frivolous lawsuit.

Nor will $45/mo. be a factor when your tenant and their legal aid “dream team” of attorneys sue you and win a (legitimate OR frivolous) lawsuit and get awarded $50,000 by the jury filled with tenants.

Insurance is an IMPORTANT cost of doing business. Get the insurance, protect your assets, sleep at night.

Todd_OH

Liability Insurance…Do I really need it? - Posted by Billy

Posted by Billy on March 08, 2002 at 07:23:57:

Question:

I’m in the process of purchasing my first property; a 4 plex. I went to an Insurance company and he gave me a quote. The quote he gave me was $1232/yr. This is for property and liability insurance. I asked him why there was a big difference from what the seller told me he pays ($650/yr). He said the seller probably doesn’t have liability insurance. Do I really need it? If I droped it then my monthly cashflow will increase by about $45.

What suggestions do you all have?

Thanks,
Billy

Probably has a General Liability policy - Posted by Tim_Cleveland

Posted by Tim_Cleveland on March 09, 2002 at 03:51:21:

I am betting that if the current owner is smart,they do have liability insurance. If they don’t have it on this property alone, they probably haveon a commercialgeneralliability policy that covers claims.lawsuits that arise from ANY location. Like Todd said, liability insurance in this day of sue-happy tenants, their visitors,somebody who cuts through your yard, neighbors etc etc etc you do need the coverage.

Just my thoughts.

Tim

One more thing… - Posted by Todd_OH

Posted by Todd_OH on March 08, 2002 at 07:49:35:

One more thing…

You may want to shop around for some insurance quotes to make sure that you are getting a good deal. Check with some other investors in your area to find out who they are using to insure similar properties.

Todd_OH