Anyone know an investor who had Umbrella Policy and still lost?

[Jeff Houpt]

Hello everyone, I think one of the most controversial subject on real estate investing is whether or not to put your first few properties in a LLC or if an umbrella insurance policy gives adequate coverage. My position is that you should just start investing and then become more efficient as you evolve, that way you don't get paralyzed buying your first property. Afterall your first few properties are often your tuition to real estate school. However my bottom line belief is you should move to an LLC as quickly as the numbers make sense. That aside Im looking for real stories of investors who did not use a LLC but had an umbrella policy and insurance on the individual properties and still lost everything. Can anyone share such a story? What were they sued for, what happened? Thanks for any insight, I have not been able to find one such story but I know they are out there!