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insurance or incorporation

I now have 3 rental units ,and am getting ready to add a 4th. I am beginning to have concerns about being underinsured , if a tenant should sue. I have been told that I could incorporate for around $500.00, and am wondering if this would lessen my exposure a bit? Or, should I just raise my insurance on the houses? I only have fire and storm protection right now, but have contacted my insurance agent about getting homeowners policy on each house which will run minimum of $450.00 per year on each house.Im not sure ,even then if the insurance will protect me from lawsuits or not?Any long time Landlords out there PLEASE help !
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While creating your investment property as a Corporation and sometimes better yet, as an LLC (Limited Liability Company) does offer some and/or many protections against personal liability, therefore asset protection, usually this must be done before you apply for financing of these properties. Otherwise, you will usually need to re-finance or write for permission from a financier, mortgage holder or bank who holds the note on your property(s) before forming a Corp of an LLC. Each state has it's own criteria. An attorney would better assist in the creation of either one of these entities.
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