How to protect your primary residence from rental properties

[Sam Li]

Hi, I am new to BP and also new to real estate investment. We started to invest in rental properties earlier this year and under our personal name currently. I have been hearing about setting up LLC to protect your primary residence home to be impacted by rental properties, but was never clear about why it's needed or how it's done.

1. What types of issues will put your primary residence in danger? There are landlord insurance, renter insurance and also in the rental lease, I see lines stating that tenants should take responsibility if anyone is hurt in the house. Should not those put enough protection already? 

2. To set LLC, does it really isolate your primary residence completely? I have been hearing that's not necessarily the truth.

3. Once you start to have more properties, it looks better to have one LLC per property to completely limit max loss to the specific property if anything happened. Is that the recommendation if LLC is the way to go?

Thanks in advance,

Sam