If someone injures themselves and sues, they will sue the LLC and not you personally.

One tenant has an injured knee and is due to have surgery In July.

In a real world example, a guest got severely injured and the regular $100,000 coverage on the policy was not enough so the umbrella picked up the rest.

But for investment properties, I’d feel that would open us up to way too much liability that insurance likely wouldn’t have to cover if a tenant or guest was injured where a permit was required but not obtained.

On episode 442, Bryce Stewart discussed how anyone hiring a non insured worker (ex: shoveling a driveway, handyman work, etc) should have them sign a workers comp waiver form in the unfortunate event that they get injured working on your property.

Someone gets injured in the basement your home owners insurance probably will not cover it and the liability would be pushed back on you.Would suggest discuss the finish with a Licensed Contractor, Licensed Expeditor and maybe a zoning attorney in regards to adding a unit to current zoned two unit converting to a 3 unit.Also, when buying a two unit and converting it to a 3 Unit, read your documents with out knowledge of the conversion the bank holding your mortgage could call your mortgage.Let me know if you have any questions.RegardsJoe Scorese

If someone gets injured wouldn't it still come back on the property owner?

If a repairman is injured working at a property, if a potential tenant breaks something inside a property they're showing - it covers all of those and more.  

That lawsuit is a claim for fraud, and that’s what fraud typically is...a misunderstanding and someone being “injured” and wanting to hold the other responsible for it.

Anything which injures health, is indecent, offensive to the senses, or interferes with someone's free use of property can be a nuisance.