Relying on home coverage liability to cover rental?

[Edita D.]

Hey guys,
I am shopping for an insurance for our rental in TX, and the insurance agent proposed to NOT get 300K liability coverage, and instead rely on my home liability coverage to cover the rental. DIfference in cost for no-liability vs 300K liability for rental is 550$ vs 1250$/year.
What do you guys think?
Thx!
Edita

[Kevin Romines]

As an insurance agent, I can tell you the specifics of what is being proposed. We do the same thing all the time, however in our area, the savings in more like 100-200 a year per rental by structuring it this way.

The agent is just doing a liability extension off the primary residence. When I set my investors up with their insurance, I give them a million on the primary and then I extend that same million to each rental. Each extension is between 15-18.00 a year, vs. the individual liablilty on each rental being between 100-200 a year.

Its a great way to get very large coverage, at low costs and is done every day in our industry. If your agent or their company doesnt do this in this way, I would shop around.