Real Estate Asset Protection

Liability Insurance is your first line of defense against any lawsuits. The typical homeowners insurance that mortgage companies require will include some level of liability protection. This insurance, however, may not be adequate if the property is involved in a major lawsuit. This is why it is a good idea to have the owner of the property be an LLC. Make sure the named insured on you homeowners policy is the LLC, or else the insurance may not be effective.

Personal Liability Umbrella Policy

In addition to the liability on the homeowners policy, it is a good idea for real estate investors to have an personal umbrella liability policy. An umbrella liability policy insures for losses in excess of amounts covered by other liability insurance policies. It also protects the insured in some situations that ate not covered by the usual liability polices.