Umbrella Insurance policy.

[Chas Lumley]

Hey all,

I'm looking to make an offer on my first rental this week and was wanting to get different inputs on LLC vs Umbrella policies.

I will be using a conventional loan and I was told by my loan officer that I can not buy the property under an LLC, but I could transfer to an LLC after acquiring.

This is just a duplex, so my total number of rental units will just be 2. I own my own house and I own some land out of state, so I have assets I want protected.

I have quotes and will be purchasing an insurance policy that provides 1 million in landlord liability and I can also purchase an additional 1 million in an umbrella policy.

My question is, is it even possible, or has anyone heard of a landlord getting sued and losing over $2 million on a simple duplex? I feel like I'd have to do something crazy negligent to even possibly have a lawsuit that severe. 

All inputs are appreciated.

Thanks!