2nd deal, commercial & umbrella policy options

[Andrew S.]

Hey BP!

I have a question about insurance policy selection for my second deal.  It's a 6 unit commercial property with 3 buildings: 2 single family and 1 quadplex. I'm curious on what others have selected for their policies

-$2500 vs $5000 deductibles - $300 annual savings.  A $5000 deductible would mean I'm basically self-insured for minimal things other than a fire or major roof failure. 

-Liability - $300k vs $500k per building vs $300k + $1MM umbrella policy

My net worth including equity is ~$300k, $100k equity is in a duplex in my name (house hacking).

I've read to establish the liability around your net worth.

Would having a liability insurance on each building of $300k be very risky if that's my net worth?

-I'm debating purchasing the 6 unit under an LLC. I'll be self-managing, and I've read that an LLC will not remove the liabilitiy from me if it's self managed.

I'm leaning toward no LLC, $300k liability per building + $1MM an umbrella policy

My investments are in Montana - An investor friend of mine is being sued for a slip on the ice on a sidewalk.

For the record, I'm taking all opinions as a grain of salt - I understand not everyone is a lawyer or insurance agent.

Thanks,

Andrew