The LLC only offers certain protections to you; a lot of investors instead choose to invest in an umbrella insurance policy instead of buying in the LLC. 

Otherwise the LLC would have paid the higher rates like a real LLC.)IF you are worth more than $1M you should already have an umbrella polciy, simply add thsi property to your polciy, might cost you $20/year, job done.

umbrella 1.then there's "cash." 

Insurance does not cover, nor does umbrella coverage.

Insurance would cover it, I would pay the deductible, and no assets would be lost.If you are in an area like San Diego where people are more likely to sue, a judge is more likely to find you guilty, and the payout is expected to be higher, you may consider an umbrella insurance policy.

Personally I would just buy an umbrella insurance policy and skip the LLC portion of your plan.

I already have an umbrella policy so not sure if upping that premium or moving it into any sort of trust/land trust or something else would be a smart move. 

Also, since you will now have tenants you should have your agent quote an umbrella policy.This may be a good time to shop your coverage if your agent does not represent multiple companies. 

@Michael LeBlanc, it's 100% unnecessary to open an LLC on a house hack.If you want protection, ask your home insurance provider about an umbrella policy.

If all subs have GL and workers comp and I have an umbrella policy for my llc does that mitigate most of the risk?