Greenville Property Managers on Determining Your Liability Insurance

As a property manager in Greenville, you need to have landlord liability insurance to protect yourself against tenant lawsuits. You owe many responsibilities to your tenants. If you fail to fulfill even one of them, and you donâ??t have liability insurance, you may end up paying thousands of dollars in damages. Since much of your wealth is probably tied up in your rentals, you may have to sell at least one of your properties to pay the damages.

Just because liability insurance is good to have, doesnâ??t necessarily mean that more is better. Higher insurance premiums cut further into your profits as a rental manager in Greenville, and the extra money you spend on unnecessary insurance is money you canâ??t spend on repairs, improvements, or new properties. Additionally, having a high limit on your insurance policy may encourage some tenants to be more litigious than they would otherwise be.

Calculating the right level of liability insurance involves consideration of your income, your properties, and your risk aversion. If you find that you are generating generous returns on your real estate investments, then you are in a better position to pay for additional coverage. Assessing the unique qualities of your properties is important. If you have an older property, you need more insurance because it is more likely to develop maintenance issues. If you have a spa or pool on your property, you need more insurance because there is an increased risk of injury or death occurring on your property. Ultimately, you need to know how you evaluate risk. If you are less comfortable with risk, you need to buy more insurance.

For more information about calculating your landlord liability needs, please contact Greenville property managers today.