How many properties do you get COMMERCIAL Insurance?

[Mike Kalob]

Hi All,

Thanks for all the tips thus far... so I have 4 properties at the moment, all under my personal name; I read the LLC Vs Umbrella Insurance threads and decided to get $1mm Umbrella under my name, with each unit having its own separate insurance policy (300k liability each)..

Now, I'm planning to get 1-3 more properties, but my Umbrella Insurance is saying that I will now need a commercial policy as it sounds like I'm running a full-time rental business, which is kinda true, though it's my side-gig atm (I'm in full-time finance). 

My condo/home insurance carrier which insures each of my current 4 places said the same thing..

..So I ask you all with over 4-5 properties - at this stage in the game...

1.  Do you dump the Umbrella Insurance (which covers only personal rentals, NOT COMMERCIAL rentals which is what they'd deem my activities if I get more properties).

2.  Do you get Commercial Insurance ON TOP OF home/condo insurance of each of your property or are they swapped?

3. Assuming its swapped in Question #2, can I assume you then have an LLC for each property instead of the Umbrella Insurance route? If so are you paying for 5 commercial insurances for 5 separate LLC/properties?

Thanks in advance for any insight.

PS I'm in NJ and all my units are residentials, not commercial properties.