Legal Question in Business Law in New York

Rental propery LLC / Incorporate / Umbrella Policy

I live in North Carolina and am about to acquire a 2 family house in New York (Long Island) that I'll be renting out for some extra income. I've been advised that an umbrella insurance policy might fall short incase I'm ever sued for big bucks and I'd lose my personal home as well in a suit. I'd like to keep things as simple as possible, how likely is a umbrella policy going to fall short? Should I incorporate or create a limited liability corporation?


Asked on 9/09/03, 5:25 pm

2 Answers from Attorneys
Norman Nadel Norman Nadel, Esq.

Re: Rental propery LLC / Incorporate / Umbrella Policy

It all depends how tolerant you are to risk.

An umbrella policy provides excellent protection.

LLC provides some insulation.

Not many house renters get wiped out as a result of unexpected insurable (but uninsured)losses.

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Answered on 9/09/03, 5:48 pm
Robert R. Groezinger GroezingerLaw P.C.

Re: Rental propery LLC / Incorporate / Umbrella Policy

Use the umbrella. It is the cheapest most effective bet. How hurt do you think someone can get in a house? It's not like being run down by a car.

Good Luck

RRG

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Answered on 9/09/03, 6:22 pm


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