Our house has been rented for the past several months. I have been told that I need to have liability insurance in case the tenant sues. The house is held in a corporation. Can a tenant sue a corporation?
A corporation, just as a person, is a legal entity. Of course, a corporation can be sued. If something happens, there is no insurance, and the amount awarded is really big, just flip them the keys to the front door and walk away.
...and liability insurance prevents a tenant or a visitor who suffers damages from suing and taking away the house......
I hold my cars under a corporation for this reason. If I or another driver cause an accident driving the vehicle, I can flip the other party the keys and say "here's what the owner (the corporation) has in assets. It's yours. The cost of the corporation is offset (partially) by the reduced cost of the insurance (just above the legal requirements).
