Some also add an umbrella policy to increase the insurance amounts.Also important to note: you must treat your LLC as a seperate enitity - keep minutes, seperate bank accounts, seperate accounting, and having the property titled in the name of the entity. 

This is all under the umbrella of the IRA.  

Lesson #1a: Keep an umbrella in the ride.

Did you have to take any additional umbrella insurance to cover yourself for the liability ?

Just make sure you have a stable umbrella insurance policy, probably$1M. 

We decided to go with umbrella insurance rather than setting up an LLC, so I'm assuming that we'd check "individual/sole proprietor" and include personal info for one or the both of us - just wanted to make sure before we send everything off.Unfortunately, the person we're working with at IHA hasn't given a definitive answer, so I thought that I'd ask people with experience.

i also purchased a general commercial liability umbrella for myself of 1mil.  

And check into Umbrellas.

Put them under your personal name-you can also get 30 yr permanent financing from your bank with no call- get a umbrella liability policy for $1M (cheapest coverage out there) and then worry what address to use for your LLC.

For now my partner and I are going to be in a general partnership with a high umbrella policy and eventually transferring into a llc transferProblem is I don't want to trigger due on sale clause if bank finds out about me transferring my mortgage into a llc.There has been many heated debates on banks triggering due on sale clause and transferring properties into llc after closing.What would be your suggestion to make the partnership less complicated @Drew Shirley?