Insuring a house hack
First time home buyer looking to us fha to buy a duplex and house hack. My question is, since I can't put the property under an LLC, how can I protect my self from being sued by a tenant in a property that's under my name!! Thanks love the community!!!
Life lesson: anyone can sue someone at any time, for any, or even no reason. You can camouflage the target on your back a bit by holding the title in a living trust. But that's no guarantee.
And, you can follow all good screening procedures, professionally run your business, and don't get too cozy with your neighbor/tenant.
After that, roll the dice. Just don't worry about it--do the right things at the right times and you'll likely be fine.
Keep investing and moving forward!
PS: Think about an umbrella insurance policy.
#2 1031 Exchanges Contributor
- Investor
- Las Vegas, NV
A PM with proper insurance to protect you on the operations Side. Decent property insurance and an umbrella if your net worth exceeds $500k. You are 10 X more likely to be sued for something you do than your property does. In which case an LLC wouldn't help anyway.
There have been at least 10 requests over the years for examples of people being sued and their LLC saved them. I don't think there's ever been one response. Even a request for people being successfully sued is unlikely to get a result, especially one that exceeded regular insurance coverage.
@Khan Hosey Umbrella policy. At least $1MM.