(as long as you were not determined to be at fault or negligent in the loss)

So my last tenant moved out Sunday. I got the keys from her and looked around the place and the bathroom floor was soaked. She said "oh I think that toilet is leaking". Upon closer inspection the A/C drain was clogged...

However, in this case, there was obvious negligence on the part of your contractor and the court, should it come to this, may see it as such.

Was this a badly negligent act or just plain stupidness?

So, I know this isn't related to real estate, but it does deal with taxes and investing, so I figured some of you guys would have some good suggestions.Someone I know was in a car accident and he will be receiving a settlement now for the negligence of the other driver involved.

Negligence is the easiest way to have your corporate veil pierced.5) Use property managers - Having a PM handle the day to day operations seperates you from having these ongoing daily responsibilities and provides evidence that the owner/manager of the LLC is a non-active participant in the daily operations, rather just a passive investor.

They could say that since the landlord had knowledge of the tenant using a rake and never instructing the tenant to put it away, that the landlord had a degree of negligence and his insurance company would pay.

The second reason is because if someone is on the property is injured due to negligence on the tenants part, the attorney has a policy he can go after in litigation.

So far, Missouri does not have a Series LLC, which is the best LLC (IMO) for RE, but the courts here are conservative and pro-business/landlord, even if your area is a little more liberal, you'll find plenty of protection for the small operators with regard to negligence and liability.

Proper insurance and operating your units without negligence is another step in the right direction.