Switching from individual to commercial landlord policy

[Bob M.]

Hi-

I just put my third SFH rental under contract and when speaking to an insurance broker he mentioned I may do better switching from individual policies to one commercial policy, especially as I continue to add any other properties to my portfolio. After running the numbers it made sense, he quoted a replacement cost of $90 a square foot on each SFH, (which would cover more than my purchase price on each). The premium Would Be about $3200 total with $2500 deductible. He mentioned some investors go as low as $70 a square foot for lower premiums.

My questions is what do most of you have for coverage or recommend to your clients?  Two properties are in Michigan, one is in Oklahoma.  They range from 1300-1900 sq feet and avg purchase price is about $110k with conventional financing in place. 

Also. For liabiality, they would each be covered for $1M. He said I would not need more than this since my net worth is less than $1M, however, I am having him look at quotes for an excess liability umbrella policy for these as well. Is this going overboard? How much liability overage do I need on multiple SFH,s with a net worth less than $1M?

I will not be able to cover them under my existing Allstate Umbrella policy anymore since they would now be covered under another companies commercial policy which is why I am looking at this. 

Thank you everyone!  

Bob