Umbrella insurance will give you more protection than an LLC, cost less, be less hassle and be more likely to be properly maintained.

@Megan Shebeck one is not better than the other, but rather to have both of them work together to best protect your investment.Most investors who will be financing in their personal name will just buy higher liability limits with an Umbrella policy. 

I have one LLC, one bank account, one spreadsheet, one Cozy account and one umbrella policy for 17 SFHs. $2M umbrellas is around $1,200 per year. 

(Yes, I know, umbrella Insurance can be got). 

It seems to me that the big advantage is liability avoidance, but can't you just get an umbrella liability policy instead (which you might need anyways even with an LLC) and skip the LLC fees?  

And to just get a good umbrella policy instead. 

We have an umbrella policy on top of our rental policy that increases liability limits.

The owner of the operating LLC is the umbrella LLC.Another way to look at it:  Mo Smith Investments is your umbrella LLC. 

If you buy in your own name you can get better terms but you have more risk so you need an umbrella policy.

If you're going the umbrella insurance route, make sure it will cover you for several things including just the routine slip and fall (like mold or earthquake).