New Landlord- Should I get landlord insurance or umbrella policy?

[Aiesha Hooper]

Greetings! 

Next month, I will be renting out my SFH. I have a property manager, but I understand that they do not assume responsibility for any legal issues if an incident were to occur with the tenants. Should I can cancel my home owners insurance and get landlord insurance or umbrella insurance?

[Vaibhav Puranik]

@Aiesha Hooper - You have to get landlord's insurance. You don't have a choice especially if you have a loan on it. Whether to get an umbrella insurance depends upon your risk appetite. I have an umbrella insurance. Almost all of my friends with rental properties have an umbrella insurance. As said by others here landlords insurance have two purposes, to give you money to replace or repair your property in case of a damage and it also pays smaller amount of liability in case of a mishap. Umbrella insurance will increase the liability limit drastically.