I want another separate insurance policy (like an umbrella) for more coverage in case something happens.

I think an umbrella liability policy suits most people just fine.

Some say the costs associated with an LLC are not worth the benefits it provides because an umbrella policy for some $25-$30 a month can do the same.

Depending on how much risk you want, usually is 1m in 1 LLC if all your assets is like 100k just buy umbrella insurance to cover your self in case of lawsuit.

Get insurance, plenty of it, with umbrella insurance on top.For a small investor just starting, just him and the property, it's easy to pierce the corporate veil, which is one approach lawyers get after you.

You should already have a large umbrella policy covering your net worth both personal and rental.

best practice (imo) is to buy in your personal name, get a Freddie/fanny mortgage for the low rates and longer term, then put an umbrella policy on top. if you put it in an LLC you get much less desireable termssome people will advice to buy in a personal name and quitclaim the deed to your personal name afterwards, while usually this is possible, this is technically not allowed and can come back to hem you up, albeit rare.

Umbrella insurance. 

Another expense... 3 million dollar umbrella to mitigate some risk!

To help with liability we both purchased large liability umbrella policies.