landlord liability and renter's insurance

[David Duong]

Hi everyone,

Posted this on the landlord forum because I didn't realize that there was an insurance forum.

I'm a little confused. To protect myself from liability, my insurance agent suggested two things: either requiring my tenants to obtain Renter's Insurance or that I obtain an umbrella coverage. She said, for example, if someone was seriously injured on the property because the tenant left a rake or skateboard and the person incurred serious medical fees, he/she can go after me. But if I have renter's insurance then that should protect or partially protect me.

Also, read a landlord book who also endorse renter's insurance, but the book wasn't clear why it was recommended.

The other option is to obtain an umbrella coverage, such as a million dollars.

I would like to protect my hard earn assests in event someone is injured on my property as a result of my tenant's neglience. The property is in my name as I have yet to form a company.

Thanks.

Any insight is appreciated. Thanks.

[Marc Freislinger]

I agree with Angie, but add an extra layer.

My rentals are owned by one LLC and managed by another. Renters are required to carry insurance, and both LLC's have umbrella coverages. $1MM in coverage is actually faily inexpensive.