Commercial Insurance Policy for multiple Rental Homes

[Kevin Kelly]

I just found Bigger Pockets after all of this time and this will be my first post....

I have been involved in buying and selling investment properties for a while now and currently own multiple buy and hold SFR rentals and one condo.

My question is this:   I recently started looking around at insurance options for the portfolio and after speaking with a few agents I found one who said they specialized in people who own multiple rental homes.  She proposed that we have a commercial policy issued for all of the rentals and quoted me on that.  In the end we will save a ton of money this way and they just bill us monthly, I can even put it on my Amex because none of them have loans/impounds.

My now former agent tried to make a point though that I am at a huge risk because the policy covers multiple properties that are owned by different entities. There are 4 individual LLC's which own a couple properties each that are all owned by a trust. There are another two LLC's outside the trust which also own multiple properties. All of the LLC's and my wife and I will be on the policy as additional insureds.

Is this a normal way to structure this?  Is it safe?