LLC for home turned rental or sole proprietorship

[Brian Christensen]

I plan to buy a new primary residence and rent out my current home. I have an LLC set up for real estate, but it is not being used. My question is regarding putting it into my LLC when I rent or leaving it in my own name.

Considerations: 

1) I eventually may consider a 1031 exchange. Are there issues with having it in an LLC? Can I add funds to the LLC if I need more money to 1031 into a larger property?

2) Liability protection would be great. Could a large insurance policy be sufficient?

3) If I change ownership to an LLC, do I miss out on the home owner exemption of 2/5 years...don't pay taxes if <500K?