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During my morning read of Investor’s Business Daily, the real estate section had an article that caught my attention. Real estate investments can make a lot of sense for financial women who want to delve into more alternative investments. And for those who don’t, if you own a home, then you are in essence a real estate investor because you have either your money invested in your home, have taken on debt for your home, or a combination of the two.
The article explained that LLC’s, or Limited Liability Corporations, don’t completely protect property owners from liability. The reason, according to the article by lawyer and CPA Jeff Schnepper, is because liability involves someone being at fault, or negligent. In this case, if the owner has been negligent, or there has been malpractice, then she could still be personally liable. The author recommends liability insurance as the recommended protection; I think liability insurance makes sense for anyone who has accumulated wealth in the litigious society that we are in today.
If you don’t have liability insurance, take time to speak with your insurance agent to see if this makes sense for you. Even if you don’t own investment property, someone could be injured at your home and you could be at risk. First, I think most people, women especially, would feel terrible if someone were hurt on their property, and would want to provide what they needed to recover from injury. Second, financial security means making sure your money is protected and safe.
photo credit: homesbythomas