We have recently heard that landlords should set themselves up as a Limited Liability Partnership in case they should ever have someone claim against them, which could lead to bankruptcy and we would lose everything we have?
While we have landlord insurance and maintain our properties well, there is always the risk that if a tenant was seriously injured and claimed against us, (where the insurance company refused the claim), we could lose everything.
Are we worrying unnecessarily?
We have looked at the requirements to have a limited liability partnership which don’t seem to be too difficult to set up and run.
You need to take proper advice, but my understanding is that negligence is the only thing that insurance wouldnt normally cover you for and a company structure wouldnt protect the Directors from that either.
That’s good to know and perhaps we are over thinking it.
We keep our rentals in good order and keep up to date with regulations through many landlord forums.
We also have public liability insurance through our contents policies (the rentals are flats where a block policy covers the buildings insurance).
So if we continue to check the rentals regularly and the tenants are prompt in letting us know if anything needs attention, which we deal with immediately, then we have nothing to worry about and can continue with the rentals in our joint names.
