Combination of LLC and Umbrella Ins., what to do?

[Bienes Raices]

This is for a SFH and an LLC that I don't own yet. I've been calling some insurance companies but still don't completely understand this.

I've been told by the insurance companies that I've talked to that the liability part of dwelling fire will only go up to 300K and that I need to get an umbrella to go up to 1 million.

But I've been told on the forums that a personal umbrella liability plan won't work for rental properties (it will exclude "business activity")

Do you use a business umbrella for your LLC? Is it a lot more expensive than a personal umbrella?

I'm trying to get some rough idea of the costs of not using only insurance (no entity) vs. LLC + business umbrella. Thanks.

[Eddie Ziv]

What you should look for is a landlord insurance policy. Allstate, American Modern and Homeowners Insurance company carry it and I'm sure some others do too.
My policies covers me up to $600,000. If you are really concern about a potential law suit, consult with a lawyer as to the level of protection measures you need to take. To the best of my knowledge, a plaintiff needs to prove negligence on part of the defender and unless you were notified of a problem and neglected to fix it, it is hard to prove. Also, if you use PM, it somewhat reduces your personal or your company's direct liability. Off course, everybody can sue you, but whether or not they can prove negligence, is another question. Again, I'd strongly recommend consulting with a lawyer if you are concern about it.