For a rental home in Southern California, what amount of liability insurance would be appropriate? The homeowners company offers $1MM, we are wondering if we should add an umbrella for additional.
Are you the owner or the tenant? Wouldn’t the tenant need to get insurance? If not owner occupied…you would need to check to see if your homeowners covered if someone else was living there.
It’s a parent home with tenants, insured as a rental, just trying to figure out the liability needs, especially as we kids are managing it from afar.
I don’t think there’s one right answer. Suppose someone became paralyzed as a result of the pool and wouldn’t settle out of court. Economic damages alone could be over 10 million, and they would almost certainly sue for pain and suffering as well. So you have to balance the cost of the insurance premiums against the likelihood of a truly horrific accident, the probability your parents would be held liable, and the victims being unable or unwilling to settle for the one million provided by the homeowners policy.
We carry 2 mil and an umbrella…no pool.