Do I need umbrella insurance?

Question

I have a 4-plex that has home/ fire and earthquake insurance. Do I also need to buy umbrella insurance for the place? I don't live there.

Thanks

T

Terrell Garren · Answer

To: gen x, gen y and millineals.  From: ok boomer.

int main ();

{

if rental property investor then;

If net wealth < $1M, then umbrella policy;

If net wealth > $2M, then umbrella policy and llc;

else;

become a rental property investor so you can have $1M;

}

Darius Ogloza · Answer

Umbrella insurance is personal to you and it does typically cover landlording activities as well as other activities such a driving a car, etc. It is a valuable tool to cover your personal assets in case a claim is made against you whether arising out of your rental or other activities.  It is usually priced quite reasonably.  If you have substantial assets it is pretty much a no-brainer in my opinion as it is usually cheaper and less time-consuming from a form-filing perspective than maintaining a bunch of LLC's.

Jeff Pollack · Answer

@Ann Nguyen, "need" is a strong word, but umbrella insurance is by far the cheapest insurance you can buy for the amount of coverage it provides. Two things everyone should have..........a HELOC and umbrella insurance.

Brent Paul · Answer

I would absolutely get an umbrella policy.  Better to have than not to have if something happens.  Opinions will vary on this.  Just my 2 cents.

Alexander Yuen · Answer

@Ann Nguyen

You don't NEED to, but if you have a high net worth (or at the very least, it's greater than the liability coverage stated in your landlord policy) it doesn't make sense not to get it since the policies are inexpensive relative to the amount of coverage you receive.

Assuming your 4-plex is in Mountain View, you would almost definitely fall into the category of people who should be buying an umbrella policy.

David Short · Answer

@Darius Ogloza

Yes. Yes . Yes

My $200 policy saved me 5.5 million dollars  you heard right 5.5 million. Death of Tennant, not our fault.

Do I need umbrella insurance?

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