@Inderpreet Singh  I use Liberty Mutual for my umbrella and have been very happy with them. 

With enough knowledge you can make a educated decision on which approach you take.My experience:I personally don't sign up for any program who take you aside during events and try to sell packages that is just blatant sales strategy.Once you sign up there is every attempt to make you sign for their programs for bookkeeping, registered agent, LLC or corp setup fee which have ridiculous even with platinum membership.Basic standard structure they suggest to take advantage of multiple deductions can be easily achieved by proper education or work with a good firm like https://wcginc.com  who is local to you.A umbrella C-crop to manage all other LLC properties and take advantage of many tax deductions that are not available with a llc, its also used to take losses up to 100K as startup expenses and dissolve the entity after few years.Few LLC entities for investing in Real Estate, etc preferably in Wyoming or Nevada ( you can find many companies online who can do this for $150 compared to anderson $1500-$3000) , they will claim they have a secret Operating agreement which is bogus.They certainly try to take advantage of tax loopholes and claim to be smart people, my view they are just taking advantage of numbers as per their own statements.

Personally I’d do a 1031 to save $40k, I’d skip the LLC, increase the limit on my umbrella, and call it a day.

Good insurance, particularly with an umbrella liability policy provides very adequate protection on smaller assets. 

I'm also adding an umbrella policy, so thank you all for the suggestion. 

Generally speaking solid insurance and a good umbrella policy will provide ample financial protection for most liabilities.

Best course of action here is to make a WY Umbrella LLC that owns the CA and any future LLCs.2.

I have a few dozen rental homes, and I've found that the only master umbrella liability policies my agent can find now require $1 million underlying liability coverage on the landlord policies.

Though USLI, one of the biggest umbrella policy providers, dropped my max coverage to $1M because I had pools.

For added security, consider umbrella insurance alongside the LLC.