Liability insurance vs LLC

[Dan Casey]

So I stumbled across an interesting video which was in response to one of Brandon's.  He made some compelling points regarding how an llc may not really protect you.  His argument was leaning more towards remaining as a sole proprietor with liability insurance instead.  The main idea behind this was that as a small llc with a single member there would be a good chance that a judge could likely pierce the corporate veil negating the any protection the llc provided.

His argument seemed reasonable enough, so I'm wondering what everyone's take is on this?  

As long as you are on top of maintenance and in general doing the right things to keep your tenants safe, is their much to be concerned with?

https://youtu.be/aPWKvBfoBkM

[Sean O'Dowd]

This has been been debated left and right and will find people on BP with extremely different opinions. 

That being said, an LLC combined with an umbrella is the safest thing you can do. Yes, there will be extra headache involving opening a seperate bank account. Yes, this amount of protection is overkill in 99.9% of situations.

That being said, I don't want a 'black swan' event to impact my real estate, and I will always default for the LLC. The few hundred bucks it costs to set up and maintain are worth it