The current owner has a renter's policy, as well as an umbrella policy for his business that covers this multifamily.

This helps seperate you personally from liability arising inside the LLC.6) Land Trusts (Don't actually provide asset liability protection but do assist in several aspects)7) Additional Insurance (Umbrella Policy)

The other option is to obtain an umbrella coverage, such as a million dollars.

Umbrella coverage in a simple entity are a good place to start.

I have never sold a home as a Realtor, am I still under the same umbrella?

If you intend to begin your investment career in real estate or anything else now this is not a good attribute if your objective is to invest now.Yes you can pay in more money up front to buy paid up additional insurance and if needed you can withdraw or borrow that money.Since it is your money it will generate additional paid up insurance much like an interest payment (all not taxed under the umbrella of the insurance policy) .

This is a good reason to have an umbrella policy though...although I am not sure that it would be covered.

I agree for any worker's comp it should be covered by your GC and you should have a copy of current insurance policies for every contractor you hire to work on your jobs.I would also suggest an umbrella policy for your business.

We use an umbrella liability insurance policy that covers rental units, and also change the home's policy from homeowner's to a rental property policy.Note: I use a simple Revocable Living Trust.

These numbers would barely cover a good umbrella policy.I could give more examples, but the point is, have you done your own pro-forma to determine what your stabilized P&L would look like?