Legal Question in Real Estate Law in Illinois

Re: Liability Insurance on property with shared ownership

This is really more of a question for an insurance agent. However, you may want to form an LLC to own the premises and then have the LLC purchase the requisite amount of insurance.

Re: Liability Insurance on property with shared ownership

I'm going to interpret this question as "how does the family, individually and collectively, protect itself from liability--the question of how much insurance is really one for a good insurance agent, not a lawyer. From the liability side, you might think about forming a family corporation, or LLC, and transfer the farm assets to that entity, and then buy a policy. BUT, what about the guy who farms your land? That person should have a policy, AND MAKE YOU ADDITIONAL INSUREDS ON THAT POLICY. Hope this helps.

Re: Liability Insurance on property with shared ownership

Each of you should check with your current insurers to see whether additional coverage is recommended. Many homeowner policies will provide som coverage for part interests in other property that you own but don't manage or occupy, but it may not be fully adequate. Also ask about "umbrella" liability coverage. You might want to find out if the tenant farmer's lease requires him to carry liability insurance, and if so, then be sure he actually has such insurance and that all co-owners are named as insureds in the policy.

Re: Liability Insurance on property with shared ownership

Insurance coverage is also sometimes based on the potential liabilities, as well as your assets (since of course a judgment can be for more than your net worth). The next question is what is covered and how.

Daniel

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