Experienced Landlords, is $500,000.00 liability coverage an adequate amount of coverage for a two bedroom condo in SoCal? Not sure?

  • by D R
  • Oct 05,2017
  • 6 answers

Experienced Landlords, is $500,000.00 liability coverage an adequate amount of coverage for a two bedroom condo in SoCal? Not sure?


LIKE OR DISLIKE:

  

Insurance Answers (6)

car253 last month

You should reduce the liability coverage on the condo policy to $100,000. That will save you some money there. Then take the umbrella policy for $1,000,000 or $2,000,000. The umbrella policy covers you over your car and the homeowners insurance. Keep your policies with the same company to get the most discounts.
The reason why some people think you may need more coverage is because you mention protecting the condo for liability. But an umbrella policy does much more than that. Do you have other assets besides the condo ? Like cars, boats, other property, pensions, ect. Because if someone sues you they will go after ALL your assets and not just the condo. That is why an umbrella policy is so important. It protects ALL your assets, not just the condo.
So, lower the limit on the condo policy and take the 1 or 2 million dollar umbrella policy. Your insurance agent should be explaining all this to you. Make an appointment to see them in person. And, make sure you see their insurance license, not just someone working in the office, unless they have an insurance license, then that's fine. Make sure the person you speak with has an insurance license.
An umbrella policy is the best way to protect ALL your assets.

Help others find the most helpful reviews
Was this review helpful to you?  

lucy last month

The key is that this is Liability (lawsuit) vs dwelling which replaces or covers the property if you was to sustain a loss.
You are right to think, if sued and only have $500,000, then could lose this property which is your own/main asset.
You have gotten some good advice on here from agents (not me), so you need to find out how much more in an umbrella policy do you need to protect (you) if sued, since in the US, we just love to sue.
http://www.managemyapartments.com/landlo...
This site explains how an umbrella works and the "possible" cost for each million you buy..
It gives an example of $300 for the 1st million, then $100 for the 2nd million and for each million more drops more. But all of that will dependent on where you live and in SO CA, will most likely cost much more than say NB.
Do as the agents suggest and have an agent advise you.

Help others find the most helpful reviews
Was this review helpful to you?  

Casey Y last month

Ok, $500k is probably what you are being offered on a Dwelling Fire policy as the maximum available liability limit. Some carriers will go higher on the primary policy, others want you to buy Excess Insurance (aka Umbrella) if you want a higher limit.
You have some options:
1. Call the agent who writes the policy covering the rented condo and ask for Excess Liability Quotes of $1,2 and 5mil
2. If the property is in your individual name (which it shouldn't be, but that's another story), you need to contact your homeowners company and ask for an umbrella quote. They will want to see your homeowners (which they write), your auto and any other policies you may have (including this rental policy). Then, get quotes for $1, 2 and 5mil
You just ask an insurance agent your question. They can help and you can make a business decision on your ultimate limit of coverage.

Help others find the most helpful reviews
Was this review helpful to you?  

mbrcatz last month

Not at all. You should have at least $1,000,000 on the primary coverage, AND enough excess liability coverage to cover whatever you get sued for. For a landlord, I'd START at $5,000,000, meaning a total coverage limit of $6,000,000.

Help others find the most helpful reviews
Was this review helpful to you?  

tishyyy last month

Hmm

Help others find the most helpful reviews
Was this review helpful to you?  

teddy last month

It depends cause i know for a rental apartment here in town I live in it requires that you get a $200,000

Help others find the most helpful reviews
Was this review helpful to you?  

Post a Answer

Your comment was successfully posted!

Or use your account on Blog

Error message here!

Hide Error message here!

Forgot your password?

Or register your new account on Blog

Error message here!

Error message here!

Hide Error message here!

Lost your password? Please enter your email address. You will receive a link to create a new password.

Error message here!

Back to log-in

Close