LLC Structure and Insurance

[George Glessner]

Hi All! 

I am in the process of creating my first LLC with a lawyer. I am planning on buying my first property this summer through this LLC. It will be a single member LLC. I will have a separate bank account for the LLC and all expenses for the property, as well as income, will be through that bank account. My lawyer suggested having another LLC to act as the property management for the property, but I feel like that may be overkill just starting out.

One of my biggest questions is insurance for the property as well as the LLC. I know I will need liability and landlord insurance, but what about an umbrella policy? If I were to get an umbrella policy, would I get if for the LLC that owns the property, myself, or both?

I am going to run the LLC very strict, no co-mingling of funds, but still have fear that if one of my tenants were to ever bring a law suit against me I'd be named personally. I want to cover my assets as best as possible.

Any advice you may have regarding Michigan LLCs for rental properties would be greatly appreciated! 

[Philip L.]

Easy to get umbrella insurance in your personal name but under and LLC is tricky (not sure why) if you find a insurance company willing to do it message me as I would be interested.