Question About Insurance and Liability Protection

[Frank Paladino]

I am a buy and hold investor and have started to accumulate a few properties and looking to do more.  Before I do, I wanted to ask what investors do to protect themselves as they acquire more and more properties.

Homeowners insurance covers the property and some limits on liability. The LLC provides additional protection. If someone sues the LLC at least your personal assets are protected (to a large extent).

However, the assets that sit inside the LLC are still exposed to lawsuits and in theory you could lose everything in your LLC's over one bad lawsuit. What are some strategies and additional insurance coverages that investors get in order to provide protection and help sleep better at night. I imagine with hundreds of units there is always someone bringing a lawsuit for some reason (especially in todays litigious world we live in).

Any feedback would be appreciated.

Thanks.