Insurance for multiple single family properties

[Nick Bruesch]

Hello, I am working on a growing portfolio of single family residences.  My current insurance company will only allow me to have 4 houses within my personal lines.  I just got my next house and had to go to a commercial line and the policy is more than 2x it was with my personal.  $985/yr for a $17,000, 2 br house with no basement seems really high.  Does this seem typical for you all?  Do you have any recommendations for other carriers?  Do you have to switch your personal lines to have commercial policies for your rentals?  Thank for your help!

[Michael Cummins]

Bumping this older thread to ask a related question...

In terms of asset separation through separate LLCs, is there any negative implications to putting multiple properties onto one scheduled property policy, when the properties are all owned by separate LLCs? Basically, I am in the process of restructuring from working as a sole proprietor in my own name (I know, I should have done this sooner), to having a holding LLC that I own, which then owns an LLC under it that owns each individual property. The holding LLC also owns a management LLC which manages all the other properties, but keeps all the banking, etc simple by having it all in one place, and further separates the management from the individual properties.

My broker said she can set up a policy in the name of the Holding LLC (since it owns all the properties through 2 degrees of separation) on a single scheduled policy.  I'm just wondering if this in any way could be used to pierce the corporate veil of the separate entities in a lawsuit, like would be the case if all those properties shared a bank account in the Holding LLC - comingling of funds.  

I haven't gotten quotes yet on price difference between this and each property holding its own policy, but my broker said as you start getting to larger numbers, it usually ends up better that way.  I would also hold a general liability policy on the management company for additional liability claims, etc.  

Anyone know for sure if this could be a risk to my asset protection plan?  

Thanks!