Real Estate Liability insurance is something that most investors overlook, but shouldn’t. Either they don’t feel like they need it, or they are trying to save money but either way, most policies that you currently hold won’t cover you in the event of a liability claim. If you ask, most real estate veterans will tell you that having an extensive liability coverage is the right way to go. The truth of the matter is, every business is a target for lawsuits, but any organization which has large amounts of property has an increased risk.
Whether it happens to be a fire, injury, or a contractor who falls off the roof, any claim of this sort could cripple or bankrupt your business. A lawsuit could jeopardize your assets, both personal and professional. By having a sound liability plan in place, you can avoid all these nasty scenarios completely.
A good tactic to practice would be to divide holdings under different legal entities. This helps by limiting exposure and decrease the chances that they will be targets by malicious lawsuits. Having a great attorney helps, but only an in depth real estate liability insurance plan will protect you from the worst types of exposure.