Should You Get Business Insurance On Top Of Property Insurance

[Kody Hunter]

We just got our first property and have bought it with an LLC. Do you also need business insurance along with property insurance? Please explain why if you could. Thank you in advance!

[Nathan Gesner]

Quote from @Kody Hunter:

We just got our first property and have bought it with an LLC. Do you also need business insurance along with property insurance? Please explain why if you could. Thank you in advance!

What are you protecting yourself from? Most Landlords will never end up in court. Most disputes are over security deposits and the most you'll lose is a couple months worth of rent. Slip-and-fall? Those are rare, almost always settled out of court, and your insurance will easily cover it unless you've been blatantly negligent. Same with mold, bed bugs, a tree falling on the house, etc.

You are trying to insure yourself against the boogeyman. Attorneys tell you to set up an LLC because it makes them money. Insurance companies want to sell you insurance because it makes them money. We should all have protection, but you need to understand the odds of you being sued and losing your property are probably in the realm of being struck by lightning twice. And nobody bothers with insurance for that.