Umbrella Insurance for newbie investor

[Ashley Chris]

I have 2 rental properties. I am going to have 1 more rental property next year. All of them are single family and listed under my name in state of Arizona (while I live in state of California)

I am planning to create LLC and move the houses from my name to that of LLC. Umbrella insurance is under my name. Is there a way that my personal umbrella insurance also covers LLC (I am not sure if I should go for 1 or more LLC)

[Matt Kistner]

I respectfully disagree with the last post regarding umbrella limit selection. You absolutely can be sued for and judgement awarded for more than your current net worth. No judge or jury knows your net worth. Liability limit selections are tricky. I have been in the insurance field for 17 years and this is a difficult topic area because there is no clear cut answer. You have to look at your exposure and try and identify the worst case scenario. Someone that has a single family dwelling doesn't need to carry as much as someone with a 200 unit apartment complex (ie. a massive fire in that complex could result in many injuries or deaths where in a dwelling your exposure (# of people exposed) is limited). Many people have a higher risk tolerance than others and go with the lower limits. But in short I just wanted to make it clear that you can be sued for more than your net worth & could be paying off that judgement for a lifetime with future earnings as well - it doesn't just disappear. There is a further discussion to be had about protection from establishing LLC's but then there is a counter discussion on piercing the corporate veils and getting to personal assets. My 2 cents - no offense to anyone.