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Learning, Sharing, and Teaching => Real Estate and Landlording => Topic started by: Murse on February 04, 2017, 01:28:54 AM

Title: How much liability?
Post by: Murse on February 04, 2017, 01:28:54 AM
I am currently purchasing my first rental property, the insurance quote I got included liability insurance of "1million per occurrence or 2million in aggregate." It just seems excessive to me. The property is worth about 50k and the rebuild cost they estimate to be about 90k.
Title: Re: How much liability?
Post by: former player on February 04, 2017, 01:46:04 AM
What if a young wage-earner dies in a fire caused by faulty wiring and leaves two children behind?

A child falls down some steps and becomes paraplegic or tetraplegic, needing a lifetime of care?

Personally, I'd be worrying that those limits were too low.  The insurances I have on my properties in the UK have no occurrence limits for personal injury.
Title: Re: How much liability?
Post by: Murse on February 04, 2017, 12:31:34 PM
Anyone else have any opinions?
Title: Re: How much liability?
Post by: salmp01 on February 04, 2017, 08:14:59 PM
I have 500k liability on each of my properties then I have a 2 million umbrella policy.   I've been thinking of increasing another million.  I'll probably never use it but it's relatively cheap insurance. 
Title: Re: How much liability?
Post by: Drifterrider on February 06, 2017, 05:43:39 AM
How much personal assets do you have?  Liability insurance is to protect YOUR assets.  If you don't have much, there is not much to insure.

I carry $500K on each house, no umbrella.