Rental Property in your name and liability protection

[Matt Harmon]

I am exploring using my VA benefits to purchase a multi. Since this would require the property to be held in my name and I live in one of the units, at least for a few years. How best to protect myself and my family from being sued?
My research suggests' purchasing additional liability insurance, plus an umbrella insurance policy. But how much would be enough?
Is there any other suggestions?

[Brian Boyd]

I suggest you purchase additional liability insurance and have the tenant purchase renter's insurance as well. Speak with your insurance agent about the dollar amount he recommends.

[Derek Harris]

Originally posted by @Matt Harmon:

I am exploring using my VA benefits to purchase a multi. Since this would require the property to be held in my name and I live in one of the units, at least for a few years. How best to protect myself and my family from being sued?
My research suggests' purchasing additional liability insurance, plus an umbrella insurance policy. But how much would be enough?
Is there any other suggestions?

Matt, I recommend finding an insurance broker and having them discuss the different options with you. They can tailor your plan to your needs. 

[Matt Harmon]

Thank you very much for your suggestions. I will look into that.

[Todd Rasmussen]

@Matt Harmon

Hi Matt,

A liability umbrella is a great idea, but if you are doing no to little down and don't have a ton of assets to protect, you might feel comfortable with just buying 1-2 million of liability on the policy you get for the property and waiting on the umbrella. Again, it's a great product, but if increasing your underlying liability limits to meet the requirements of the umbrella is daunting from a cost perspective you can get your liability from the property policy. As soon as you pick up number 2-3 you'll be out of reasons not to get an umbrella though.

[Matt Harmon]

Thank you for the advice Todd. Very much appreciated.