There's Two Parts to An Insurance Policy - Do You Know What They Are?

There’s TWO parts to an insurance policy, the LOSS coverage and the LIABILITY coverage.

The LOSS COVERAGE is the expensive part, because it will pay for damages or loss to your property. The liability portion covers you if you get sued.

The average jury verdict involving a landlord case is $1.2 million. You know what the problem is? Most investors don’t carry that much liability insurance! They don’t even give it a thought. For a cheap property, they only care how cheap the policy is, that is, what it will cost to replace the property if it burns downs – they only care about the LOSS COVERAGE. The thing is, you are just as likely to get sued for $1 million on a $50,000 house as you are on a $1,000,000 house.

If you are readying this, I bet on your last property you called up your insurance agent and asked, “How much for the policy?” But what you never asked was how much LIABILITY coverage you got for your money, did you? So if you didn’t ask, what do you think you got? The STANDARD policy! Do you know how much the standard property insurance policy is for your insurance carrier? Is it more than $1 million? Do you even know?

Find out! Call your insurance agent!

Comments

[Maura]

Good post.

[zookefoox]

Well said.