LLC or Umbrella Insurance

[Mark Resnick]

I am in middle of buying my first ever rental property in Florida. It is a 4plex unit. I wanted to know if I should make an LLC for it or just get umbrella insurance? Can someone please explain to me the pros and cons regarding both. Does it also make a difference with tax savings?BTW I am not sure if it makes a difference but I live in NY

Thanks

[Les Jean-Pierre]

As a person who owns through an LLC and was sued, the umbrella insurance is more important. The insurance company had the lawyers, paid the settlement, etc. The higher the limit the better. I will say in plaintiff friends nyc, only the llc was named in the suit. Many people worry about piercing the corporate veil but that was not a concern. We had an llC, a million dollar liability policy and umbrella. It was enough but in a severe case, there could have been some risk.