I believe that by BP expanding the umbrella to officially include CRE is going to make a big difference.

I spoke with the bank and it sounds like they probably wouldn't call the loan, but since we are leveraged there isn't too much equity (yet) in the house, so I am fairly confident that the property insurance plus a decent umbrella liability policy is a good route to go for now.

They have a relatively large umbrella policy and feel this is sufficent protection from potentioal loss.  

This way I can utilize lower rates (aiming for the BRRRR strategy), while still being protected under an LLC and umbrella policy. 

From there you can evaluate going the LLC route or getting a larger umbrella insurance policy. 

There's a myriad of options under the umbrella of Real Estate Investing. 

I will also be looking into some umbrella insurance plans as well to supplement. 

Please remember LLC would not prevent lawsuits but only limits the amount of damage from a lawsuit to any property(s) covered in the LLC and not affect your other investments and home.In some cases, an LLC may deter greedy lawyers/plaintiffs in going though with a lawsuit if not much equity is in the home and only a limited award can be had suing the LLC.However, for beginning real estate investors with less than 5-10 properties with very little equity, good insurance (both property insurance) and personal insurance (umbrella) is a better way to go.Why?  

do you have umbrella policy over that for liability? 

You can easily add $1m or more in umbrella insurance to the homeowners insurance policy to cover the worst case scenarios, at low cost.From your question it looks like you haven't spent much time researching this topic yet on BP.