Home owners insurance X Rental Ins or Umbrella policy?

[Rodrigo Serzedello]

Hello everyone!

I've started building my portfolio this year and currently I have 3 properties in Cincinatti area with prices ranging around 65k each.

All of the properties are in my name and now I need to decide my insurance direction.

Any tips you guys could give to me of if I should get Home owners insurance, rental insurance or even an Umbrela policy?

Looking forward to also raise my portfolio, so, not sure whats the best way and direction I should go.

Also, changing the properties to an LLC should also be a good direction right?
Thanks!

[Jared Tillery]

When I spoke with a layer to set up an LLC (multiple), both the lawyer and the insurance agent recommend having an umbrella policy on top of your regular property coverage. Part of the reason being to mitigate personal risk. The umbrella will help protect other properties and equity in the same LLC. It is best to speak with a lawyer about setting up the LLC because there is a lot to consider and what you do depends on your personal risk tolerance. As far as insurance, you should be pretty well covered with a property policy, umbrella policy, and requiring your tenants to have renter's insurance. It would be quite a feat for a lawsuit to have enough steam to go through all of that. (Not a lawyer or agent myself). I feel the best thing you can do is keep up maintenance on your properties, pick good tenants, get an property policy, umbrella policy, and require your tenants to have renter's policies. With these mitigations in place, when something does happen, the impact is minimized.