In today's litigation-rich environment, we highly recommend that all landlords carry liability insurance on their properties.

The following information has been provided by Brad Davis, LUTCF, of NCFB Insurance.

Liability insurance can be carried in a number of ways.

First, if the rented property is deeded to the owner (his/her name), liability can either be included in the dwelling fire insurance (landlord's policy) or, should the owner not want any fire coverage on the property, the liability can be extended from his/her homeowners insurance (only if the rental property is deeded in the same name as the homeowner's property).

Should the rental property be deeded in a business name (i.e. Rental Property Inc.), the owner can either purchase a dwelling fire (landlord) policy to cover the entire dwelling, and if only liability is wanted, the owner can purchase a General Liability policy in the name of the business that reflects how the property is deeded.

For the minimal difference in cost, it is recommended that the owner should purchase the maximum amount of liability available. Most companies recommend $300,000, but for the minimal difference in cost, $1,000,000 is recommended.