Hi everyone,
As someone who is looking at buying further IPs in the next couple of years, I have been looking at asset protection and whether to hold future acquisitions in trusts or not, considering the advantages and disadvantages.
It seems that one of the reasons for holding properties in trust structures is to attempt in isolating any financial liability as a result of legal action, to only the trust itself, and not to the individual (or other trusts). From what I understand, this is necessary in the event that the insurance company refuses coverage due to some escape clause in the contract (landlord didn't act quickly enough to repair a broken tile or whatever)
My question is, in addition to the normal landlords insurance coverage you purchase for each IP, is it possible to purchase a secondary level of insurance that may have broader coverage when it comes to legal liability, if the primary insurance doesn't cover it?
This could be one potential alternative to one of the benefits of complex trust structures. Just curious.
Thanks
As someone who is looking at buying further IPs in the next couple of years, I have been looking at asset protection and whether to hold future acquisitions in trusts or not, considering the advantages and disadvantages.
It seems that one of the reasons for holding properties in trust structures is to attempt in isolating any financial liability as a result of legal action, to only the trust itself, and not to the individual (or other trusts). From what I understand, this is necessary in the event that the insurance company refuses coverage due to some escape clause in the contract (landlord didn't act quickly enough to repair a broken tile or whatever)
My question is, in addition to the normal landlords insurance coverage you purchase for each IP, is it possible to purchase a secondary level of insurance that may have broader coverage when it comes to legal liability, if the primary insurance doesn't cover it?
This could be one potential alternative to one of the benefits of complex trust structures. Just curious.
Thanks
