Umbrella Insurance Policy or New Investors

[Travis Limbocker]

Hey BP,

I started my personal REI journey 3 months ago and am happy to announce we're in the process of closing on our first multi family deal! It's been a very educational process going through the steps to executing on our first deal. As a lot of you have said, it's all about taking action, or as I like to put it, just try.

I had a question for new and seasoned investors alike regarding Umbrella insurance policies. Now I'v read the forms, but nowhere in the thousands of posts does someone have an anecdote from their personal experience. I understand the arguments on both sides for an LLC vs additional liability (umbrella) insurance. We are not starting with an LLC, so let's take that off the table. I'm curious if anyone has a real life example of how Umbrella insurance saved them from a lawsuit? Because we'll only have one (1) property to start (duplex), would it make sense to pursue adding greater protection?

Any thoughts / examples?