In today’s litigation-rich environment, we strongly advise all landlords to carry liability insurance on their properties.

The following information is provided by Brad Davis, LUTCF, of NCFB Insurance.

Liability insurance can be obtained in several ways:

First, if the rental property is deeded to the owner (in their name), liability can either be included in the dwelling fire insurance (landlord’s policy) or, if the owner does not want fire coverage on the property, the liability can be extended from their homeowner’s insurance (only if the rental property is deeded in the same name as the homeowner’s property).

If the rental property is deeded in a business name (e.g., Rental Property Inc.), the owner can either purchase a dwelling fire (landlord) policy to cover the entire dwelling. If only liability coverage is needed, the owner can purchase a General Liability policy in the name of the business that reflects how the property is deeded.

For a minimal difference in cost, it is advisable for the owner to purchase the maximum amount of liability available. Most companies recommend $300,000, but for a slight additional cost, $1,000,000 is recommended.

For more information and assistance, contact Primus Realty NC.