Insurance & Trusts

[Serge Shnayder]

Hi,

I am new to this forum - but thought I would give it a try - since I've really enjoyed reading lots of the posts on here.

Here is my real estate history:

I own 3 properties around the Boston area. I live in one and rent the other 2. Of the 2 rentals, one is a full time rental and has been for about 8 years and the other is a vacation rental (ski and lake) - which I use for a good portion of the year. 

I am currently looking to rent out my primary residence full time and purchase a 2-family to live in 1 half and rent the other. 

While I have slowly built a bit of a portfolio (part-time), I am very naive when it comes to things insurance, LLC, trust type stuff. While I obviously have basic coverage on all 3 properties, I am concerned that if something happens - I may be at risk personally. But, I really don't know where to begin.

If you were in my position how would you structure the business?

Thank so much,

Serge

[Ivan Oberon]

Originally posted by @Serge Shnayder:

Hi,

I am new to this forum - but thought I would give it a try - since I've really enjoyed reading lots of the posts on here.

Here is my real estate history:

I own 3 properties around the Boston area. I live in one and rent the other 2. Of the 2 rentals, one is a full time rental and has been for about 8 years and the other is a vacation rental (ski and lake) - which I use for a good portion of the year. 

I am currently looking to rent out my primary residence full time and purchase a 2-family to live in 1 half and rent the other. 

While I have slowly built a bit of a portfolio (part-time), I am very naive when it comes to things insurance, LLC, trust type stuff. While I obviously have basic coverage on all 3 properties, I am concerned that if something happens - I may be at risk personally. But, I really don't know where to begin.

If you were in my position how would you structure the business?

Thank so much,

Serge

One of my mentors, Tim Norris, likens Insurance to the archers and knights, which defend your “castle.”Let’s explore this analogy.

Contrary to most opinion, insurance should not be the foundation of an asset protection strategy. Think of your assets, whether personal or business, as the items within your castle that you desire to protect. The legal entities that you create, with the advice and assistance of a legal professional, are the castle walls, the moat, and the watchtower you build to help protect them. What you choose to create is a summation of the needs and issues in which tax, financial, and even estate planning must be taken into consideration.

We then acknowledge that insurance is the archer in the watch tower, or the knights with the boiling oil, that attempt to keep nasty things like liability claims, fire, windstorms and other catastrophes at bay. We all know insurance does not cover everything. The list of exclusions in most policies is more than a paragraph. Likewise, the archer does not hit every target. That stated, the archer and knights (insurance) need to work in conjunction the walls and the moats legal entities) to appropriately protect your “stuff”.

I can definitely help you with the right insurance Serge and if you need it, I can refer you to some great asset protection guys.

Ivan