Posted by Dick Chelten on January 07, 2003 at 18:54:53:
My insurance is with Farm bureau Genral Insurance company of Michigan. I found out about it through some investors in my local Michigan investor’s club. There may be similar Farm Bureau or Farmers Insurance companies in your area. The point is, don’t stop looking until you find the liability coverage. Then, carpe diem!
Oh, I buy Landlord Policies, this company calls them dwelling polices,(specifically stating that this is a rental property) for each of my properties. Then, I ask them to increase the liability coverage on each policy to $1MM. Costed $60 on my last property. What a deal!
Posted by Kathleen on January 06, 2003 at 15:39:57:
I just read a post in here that warned not to use your personal name in a deal. I can understand the ramifications of that, but what if you’re putting a property under contract and then assigning it? That’s what I plan to start doing (I’m a newbie!). I need to generate some cash before deciding what type of entity to use. Is there any risk in using my personal name for these types of deals?
Dick has given you some good advice regarding the purchase of Liability Insurance. It is often times understated with all the posts concerning making one’s self seem transparent, which is really hard to do. so the answer is to insure…
All too often, folks spend exhorbitant amounts of time when getting started in this business, worrying about asset protection, and use of one’s own name, when they really have nothing to worry about from an asset standpoint. They have few assets and no cash, and need to concentrate on making money, whether that be in your own name of Santa Clause’s name, go out and make money… Then worry about protecting your assets when you have some.
Re: Using personal name in deals - Posted by Dick Chelten
Posted by Dick Chelten on January 06, 2003 at 22:01:56:
Just one man’s opinion, but I recently purchased a $2,000,000 business liability policy for $500 annual premium to cover me for unforseen legal issues in addition to my landlord’s liability coverage included in my property policy. Seems to me that that kind of small investment will give you more sleep at night assurance than which business entity you select.
Re: Using personal name in deals - Posted by Nate(DC)
Posted by Nate(DC) on January 07, 2003 at 20:34:26:
Bryan
Many insurance companies can sell umbrella liability for around $600-$700 for $1 MM. That seems to be a fairly standard premium (unless you’re doing something inordinately risky that increases your risk of liability substantially…)
I’d call an independent insurance agent and ask them about getting a liability policy.