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.
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
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