Insurance Advice: $1MIL Liability Coverage - Do I need an Umbrella Policy?

[Mehran K.]

Hi all, need a little advice on Umbrella Coverage.

Right now I'm buying&holding residential properties(1-4) that are under $100k appraised value. I don't plan on using an LLC yet so I can make financing into conforming loans easier and less hassle until I max out my 10 loans.

I've read posts where most people mention getting liability coverage of around $300k to $500k and then supplementing it with a $1million or maybe $2million dollar umbrella policy on top of that.

The insurance co. I use now and will use for my other properties has a minimum liability coverage of $1million each occurrence/$2million aggregate. Do you think I need to get an Umbrella coverage on top of that(Is $1million enough?)

Some other info on my situation:
My Primary residence just appraised at $540k and I have a $385k mortgage and a $100k HELOC(free money! well almost!). Homeowners insurance has $500k liability coverage for each person.
My Auto insurance policy has a $500k liability coverage each person.

Some other questions/things I'm wondering
If I bought a $2million dollar umbrella policy, would it kick in after the first $500k on my homeowners/auto insurance AND/or the $1million on my landlord policies?
I've read about some people running into issues with getting umbrella policies when they own more than a few rentals, I guess insurance companies are worried about more liability. Does anyone have any experience with this?