Liability Insurance Companies

[April Grieb]

Can anyone recommend a liability insurance company for a Rental Property held in an IRA? Looking to obtain quotes this week.

Thanks

[Dmitriy Fomichenko]

April, are you talking about landlord policy or Umbrella Liability policy? If you own a property in your IRA you need a landlord policy to protect the dwelling and other structure on the property. Please note that if you have mortgage on the property it will be required by the lender to protect their interest. However, even if you don't have a mortgage you should get it anyways to protect the property against fire and any other damage. Usually landlord policy will come with the liability protection as well, you should get at least $300,000 worth of liability, sometimes insurance company will allow you to raise that to $500,000. On top of that you can obtain Umbrella policy, which will cover beyond the initial coverage.