LLC vs. Insurance - Posted by Brad

Real Estate Investing Real Estate Law
#1

Posted by Randy_OH on April 17, 2002 at 21:28:54:

Jeff,
This little thing between me and Miss Caskey started with her attacking me over on the main board. So you are not seeing the whole picture. I would refer you to the thread, but it has not made it into the archives yet and is no longer in the current section. If you could read her attacks on me in that thread, I am sure you would understand my hostility toward her. Anyway, no need for you to get upset. This is just between me and her.
Randy

#2

LLC vs. Insurance - Posted by Brad

Posted by Brad on April 17, 2002 at 01:05:58:

I know by reading many things about real estate that I should use a LLC when I own rental properties. Somebody I know doesn’t believe that he needs a LLC and only thinks he needs to just have insurance. What is the difference of setting up a LLC or just having insurance on your properties? I don’t know if this will help but the state is Ohio.

Thank you

#3

Re: LLC vs. Insurance - Posted by SueC

Posted by SueC on April 17, 2002 at 12:22:47:

Here’s something insurance on the property probably can’t cover: Your pal hits and kills a (young) neurosurgeon with five kids. (How much would he make in his lifetime?) Or your seventeen year old, while driving drunk, (justa couple beers at a party, Dad!) hits and kills two five-year-olds playing in the street.

Your insurance covers the slip and falls etc. at the property. But you’d also have to have high limits on personal insurance to protect your of properties from personal liability.

#4

Re: LLC vs. Insurance - Posted by JHyre in Ohio

Posted by JHyre in Ohio on April 17, 2002 at 10:40:07:

There are lots of things that insurance does not cover- just see your exclusions. A limited liability entity can often (not always!) provide protection that insurance does not, particularly where the actions of others are concerned. And it provides a deterrent effect, making a reasonable settlement in the event of a lawsuit more likely. Also, certain entity-types provide protection for entity assets where you have incurred personal liabilities (run a search on the main news group under “charging order”).

John Hyre

#5

Re: LLC vs. Insurance - Posted by Randy_OH

Posted by Randy_OH on April 17, 2002 at 14:00:20:

My “pal” hits a neurosurgeon and I get sued??? WHERE did you get your law degree??? You should stop posting on this board immediately. You are dangerous.

#6

Randy - ease up - Posted by Jeff M

Posted by Jeff M on April 17, 2002 at 20:40:40:

Randy:
If you read the original post, you would see that the guy asking it was asking it because of a discussion with his “pal”. That “pal” is what Sue was referring to in her post. In my opinion, she was accurate in what she said. In any case, I think you should change your tone here. These are all people who are trying to HELP one another, NOT INSULT THEM. I, for one, have learned much from posts by people like Sue. If you pay attention, you might learn something too. Good luck!

Jeff M