Why is adding additional SFRs (single family residence) to a single general liability policy potentially a costly mistake for the investor?
Assuming you purchase a general liability policy with a one million dollar limit based on one SFR (single-family residence) investment property, and over the course of the next year, you add four additional single-family investment homes, your actual exposure to a third-party liability claim would be significantly higher with five homes.
In addition, while a policy limit of one million is adequate for one home, if you experienced a large claim at one location, then your policy limit will erode, and it’s likely that it won’t be adequate protection against future claims.
