Have you every been sued as a Landlord?

[Nathan Gesner]

So many people ask about setting up an LLC or purchasing umbrella insurance to protect their assets from a lawsuit. I personally think the risk is exaggerated and these protections aren't as necessary as one would think, but I would like to hear what others think.

I know this is anecdotal, but please answer the following and share only your personal experience.

1. Have you ever been sued by a renter or their guest?

2. If so, what was their claim (deposit, injury, etc.)

3. Did you lose?

4. If you lost, was your loss covered by insurance?

[Jason Bott]

@Nathan Gesner I think you need to add 2 more qualifying questions to get a true perspective;  

1) What city are the rentals located in

2) What is the grade of property in your portfolio (A, B, C or D)

I have hundreds of clients who have never been sued (B to C areas), but have a larger client with about 900 units in C to D areas and he gets sued 5-10 times per year.  I'd say it breaks out as follows;

50% of the claims go no where

40% of those claims settle for under $10k

1 claim every other year settles for between $25k-$75k

Lastly, over the last 10 years and the 25,000 units I insure nationally, I have yet to see a Liability claim settle for over $1M.  Not saying it isn't possible, but my book of business just hasn't seen it.