Recommended Amount of Liability Insurance for Your Rentals

[David C.]

To the group,

I am curious as to what the concensus is regarding the amount of liability insurance one should carry on a rental property?  I happened to speak with a real estate attorney recently who had mentioned that the bare minimum they would recommend for each property is $1MM per occurrence and have at least a $5MM umbrella policy.  However, another attorney had mentioned having $10-$20MM dollars worth of coverage per property, which I thought was astronomical.

I would appreciate any seasoned real estate owners or RE professionals to chime in. What is a good rule of thumb for recommended coverage regarding liability insurance for both SFH rentals as well as Multi unit properties.

Thanks!