I know often times people on this forum say they are unnecessary and don't always protect against liability and just get a good umbrella policy.  

You are going to blow a lot of money for a false sense of security that a good insurance policy can protect you from and save you thousandsThe LLc is the most overused and money waster used on single family rentals.

This is because Mortgage backed securities are in direct competition with investors looking for "safer" investments backed by the full faith of the United States Government. 

Remember that the more complexity increases not just legal set-up and ongoing fees, but tax prep and advising fees as well.There are several considerations that can go into the analysis of whether you need an LLC or whether a large insurance policy will suffice.

Currently, we have a homeowner's policy which extends liability over the rentals. 

Your financial activities are essentially outsourced to another institution, which may have its own policies and vulnerabilities.What Can You Do?

The ones still open to adding new policies will only insure buildings built after 2000, or 1980 (depending on the insurer), and you have to be claim free in the last 5 years.Unfortunately, $9k for a 10u does not surprise me. 

Not sure if this is the case in all provinces because Catalunya, especially the Barcelona city government, is quite left and making it difficult for investors. 

Once that deadline is broken, I do not give that same renter another chance.You need to really think this through, develop a policy, and run it by an attorney to ensure it is legal and makes sense.

@Michael Plaks your policy as you describe is much more professional and palatable.