Logistics of using both Umbrella insurance AND multiple LLC's

[Sean O'Dowd]

Hypothetical question that I may use to write an essay on for my current real estate class; was hoping to have an opinion on it!

Say you own 3 properties and manage them yourself. For some variety, one SFR, one duplex, one 6 unit multifamily. For maximum protection purposes, you have four LLC's. One is for each property, and one is for the management of the units.

If you wanted to add umbrella insurance on top of that, would you get an umbrella policy for the LLC that manages all of the units, or three separate umbrella policies for each of the individual LLC's that owns the units?