We did take out a $1 million umbrella policy for the property, as well as umbrella policies on our personal insurance as well, so we should be pretty well protected in the event of a lawsuit.  

I have a $2M umbrella policy - Third line of defense would be entities such as LLCs.  

If you have the proper insurance coverage on each property and an umbrella liability policy that reduces your risk.

@Dale Lotts & @Tom Wolf a good umbrella policy handles the majority of the liability issues.

Also, 4 properties completely paid for, some one gets hurt they have lots to go after, no debt is on them, some folks see an easy paycheck, yes an umbrella policy will help some.  4 properties if in an appreciating market will grow slower than a larger number.  

Starting out where I have very little equity in my homes is an umbrella insurance policy suffice and when the equity gets more substantial go the llc route? 

As well as the amount of umbrella insurance carried.The state where located is a factor and the costs per entity, cost of tax prep and filing fees, as well as the purpose of the entity, tax consequences, liability, or anonymous?

1M per occurrence 2M per policy is pretty standard, you can add more by using umbrella insurance which is relatively cheap.

Hello everyone,I think one of the most controversial subject on real estate investing is whether or not to put your first few properties in a LLC or if an umbrella insurance policy gives adequate coverage.

I have umbrella policy for years from PersonalUmbrella.com....Could never figure out who they are or whether they are legit?????