Protect your rental property with liability insurance.

Protect your rental property with liability insurance.

Is your rental investment property covered for liability insurance? This is very, very important. Welcome to Wealthy Wednesday.

So this is a story from a few years back. One of our investor-lady wanted to buy her 7th or 8th home and was getting a mortgage for the investment property. Now what happened in the past, she didn't even realize that she has one tenant in one of the properties and the tenant is very good. The tenant's daughter came to visit and fell at the property outside and that daughter sued this landlord for liability. Now this lady definitely got the letter but she's busy. I believe she's a nurse. So she works at night and doesn't pay attention to that. And before we close this new investment property, we found out that she has a $300,000 judgment on the credit. And this lady was so surprised, she said I pay my bills on time. All my properties I have right now, six or seven properties, they're all paid off so I don't owe anybody. And it was a very bad situation for her. It was so unexpected, a $300,000 judgment.

So don't be in the same situation as this investor lady. Have liability insurance for your rental property because you never know who is going to go and sue you for any kind of liability, any kind of damage. It can be a contractor, a handyman, or anybody. Anybody who just walks into your property can fall on the property or whatever like some accident can happen. So my suggestion will be to check with your insurance agent and definitely have the homeowner's insurance, the dwelling insurance to protect the property itself but have liability insurance. I believe you can get an umbrella policy for all your rental properties together. Again, check with your insurance agent but the bottom line is to have liability insurance. It's a must.

It's not only about building wealth, protecting wealth is very important. My name is Shawn Bhakta from Remax Presidential, South Florida Home Finder Team and I hope this information is going to help you protect your wealth.

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