THE $3 MILLION JUDGMENT
INSURANCE COMPANY DENIAL AND INSUFFICIENT COVERAGE After a lengthy legal battle, the court awarded the tenant a staggering $3 million in damages. This included compensation for medical expenses, pain and suffering, and lost wages. The verdict was devastating for Mr. Landlord, who was wholly unprepared for such a massive financial blow. To make matters worse, Mr. Landlord’s insurance company fought vigorously to avoid covering the liability. They cited various exclusions in the policy related to mold and environmental hazards. Even if they had covered the claim, Mr. Landlord only carried $1 million in liability insurance—far below the court- awarded judgment.
MR. LANDLORD ONLY CARRIED $1 MILLION IN LIABILITY INSURANCE — FAR BELOW THE COURT-AWARDED JUDGMENT.
THE FALLOUT: PERSONAL AND FINANCIAL DEVASTATION Because Mr. Landlord had no asset protection plan in place, all of his assets were exposed to satisfy the judgment. This included:
• His rental property where the mold issue occurred
• His personal residence
• Investment accounts
• Other rental properties
The court authorized the liquidation of his investments and placed liens on multiple properties. What had once been a successful portfolio of rental properties and a stable financial future quickly crumbled.
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