Even a 5M umbrella policy is not that expensive.

I did a search on BP regarding this topic and saw some posts mentioning umbrella insurance.

You might as well get a 2 million umbrella policy, would probably be a better option and much more cost effective then the cost of creating an LLC, yearly renewal fees and yearly tax returns.

If we were to put the properties in our own names, we could purchase an umbrella policy which I understand would provide us asset protection (thus, no need for an LLC), but if it is owned in one of our names, all the profits legally would go to the person on the deed. 

My recommendation is to purchase the max and consider getting additional coverage with an Umbrella policy. 

Additionally, if you use an umbrella policy to pay for damages it's likely your insurance company will drop you soon after and you'll have a very difficult time finding a new provider.

Hey Mark,When building my portfolio we felt comfortable with a large umbrella insurance policy instead of forming an LLC.

I owe nothing on any of my properties, carry an umbrella policy and make a decent amount of money a year on them.

I wouldn’t skimp on limits, and I always recommend an umbrella policy as well.

Many people will also tell you a good umbrella liability policy is plenty of asset protection, and mucking around with complicated asset protection schemes isn't really worth the time, money, and effort.