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? 

I'm still just learning but I can't figure out if it would be better to go the llc way or the umbrella insurance way .

He opened my eyes to an umbrella policy and a pro forma.

Get an insurance agent to advise you on Landlord's insurance, Umbrella insurance and Renter's Insurance.

Basically a commercial lender usually won't lend to a newly formed LLC without a track record - but they may depending on the lender and the equity position and the terms/rate.Two other options you have if you want to go residential are (1) transfer it to your name personally, take out of the loan, transfer it back to the LLC - the risk being if the lender finds out, they will ask you to put it back in your name personally or pay the note off (2) transfer it to your name, take out the loan and get a much larger umbrella policy (which is probably cheaper than LLC property insurance).

Additionally, I have an umbrella insurance policy.

For a Buy & Hold, I would suggest an Umbrella policy, 2-5Mil, depending upon number of doors. 

Account Closed Call one of the big insurance companies and ask if they provide "Umbrella Insurance" that will cover the project.

My current landlord policy and umbrella insure my rentals and home I live in at “replacement value.”

Do you know of any cases where a umbrella policy has paid of a claim?