Why real estate owners need to consider all that asset protection has to offer.

If you own any kind of income producing real estate, you are an excellent candidate for frivolous litigation. Let’s examine why you would be such a great candidate.

As an example, we consider that you own a rental property. One of your tenants returns home to her apartment, and upon exiting her car is robbed and beaten by an assailant. Whether it’s a valid argument or not, you can expect that a lawsuit will be filed against you as the owner of the rental property. A good attorney will claim that you are negligent in not providing a adequate level of security for this woman. He or she will argue that you should have taken precautionary steps, such as installing video cameras, floodlights, or hiring security guards to protect the safety of the tenants. You, as the owner of the property, become a guarantor of the safety of your tenants, to the full extent of your available assets to be attached.

You could easily be the target a large suit, even if you did all that you should have as a property owner. Therein lies the rub. Under our litigious society, it doesn’t matter whether you are negligent or whether you did anything wrong. You can preserve your property in mint condition, taking every imaginable safety precaution, and be a model landlord when something goes wrong. If your tenant is injured on your property, it will be your deep pockets that will be at fault.

While it is important to adequate insurance on the property, this will not remove you from personal liability should some terrible happen. Your policy has a long list of exclusions and exceptions, many of which will come back to bite you after the fact. Common sense will tell you that you can’t possible carry enough insurance to cover all potential scenarios that may occur. If, for instance, a natural disaster or fire were to occur on you property, injuring or killing several people; the costs could run into the millions.
When the suits are settled, whatever amount not covered by the insurance company will be your personal responsibility. The judgments against you will be satisfied by liquidating your assets; such as your home, savings, and business. If something goes horribly awry with your rental property, everything that you’ve worked so hard for could be lost. Any rental real estate is an enormous source of liability to you and poses a clear danger to your assets. For that reason, asset protection planning is essential. Utilize the resources of this site to educate yourself on how to adequate protect your assets legally and you’ll sleep better at night. Our articles, links and information are provided to help you make important decisions about your financial future.

At assetprotection101.com, we offer the latest news developments, strategies, resources and links relating to asset protection. Whether you a real estate developer, real estate owner or any business owner looking to better educate themselves on how to protect their assets, we're sure you'll find our site helpful in making a better decision about your financial future. You may even choose to receive our free monthly newsletter to keep you on top of the latest developments in asset protection.
 

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