I have a personal umbrella policy but have been told many times that's insufficient.

The forums seem to be pretty split about asset protection in terms of getting rental properties in an LLC or under an umbrella policy.  

I cannot qualify for an umbrella policy because of a wreck that I was involved in about 5 years ago, and my insurance company denied me because of that fact.

(Or, maybe someone here could speak to that as I'm not remotely qualified to address that point.)If you're really worried about something bad happening:Get an umbrella policy, a big one.Get flood insurance even if you're in a non-flood zone.

I was going to start up a second LLC to do rentals through, but I keep reading that if you have really good umbrella insurance, you do not necessarily need to isolate your properties with separate LLCs.

Should I have an umbrella insurance policy?

My Fire/Dwelling policy covers the rebuild cost of $193K, $2K in personal Property, and $100K liability (seperate $1M umbrella) for a yearly premium of $1750.

Or do I need to get two umbrella policies, one for each?

So much input; I really appreciate it.What I'm hearing so far, correct me if I'm way off track:Since I currently have few assets I probable don't need to form an LLC at this time;I have homeowner's insurance and a relationship with my agent, so getting an umbrella policy is not a problem;LLC is for asset protection and personal liability issues and something to consider when there are more assets to protect and more exposure as far as liability is concerned.Mainly what I have learned from all your generous responses is this is not something I need to let hold me back at this time.

I'll now see an overall savings- reduced my rental policies by $300 each, reduced my home by $400 (maybe more), auto stayed about the same but with better liability coverage since we are also getting an umbrella policy.