Forming an LLC for three properties

[Sunny S.]

Do I need to form an LLC if I have just three properties ? How can I protect my personal wealth if I don't form an LLC ?

[John Mocker]

Sherin,
An umbrella policy provides a limit of liability above your homeowners, personal auto, dwelling/fire (aka Landlord policy), boat, motorcycle, ATV...

The umbrella policy responds when the limit of the underlying policy such as the Homeowners is exhausted by a claim. In order to keep the Umbrella affordable, the insurance companies will have required limits for the underlying policies. Most will require you have at least $300,000 of Liability coverage on your homeowner's policy.

It is generally sold in $1,000,000 increments.