Having said that, having the base liability insurance of $300-500k along with an umbrella of $1M seems more than sufficient.....assuming you’re not running some slumlord operation. 

It is currently under my name and I understand that is not safe method to go as an investor.I was wondering if umbrella insurance policy will be good enough to cover me if any tenant happened to "sue" or file legal claim?

Meena Price , of-course consult with your attorney and CPA but if your LLC does business in PA, it will need to be registered as a foreign Corp in PA and pay PA taxes.I don't see the benefit of of have a LLC registered outside PA unless you believe the business laws are much friendlier, which is why some people choose states like DE.Some people deal in their personal names and carry an umbrella policy for liability.If you ever want to get a mortgage from a bank, most will not lend to LLCs.

Once you get over $1M of net worth, you should shop around to find an umbrella policy.

In some cases umbrella insurance is plenty.

In either of these plans, you will hold the plan funds in a bank account of your choosing and have signing authority on the account under the umbrella of the retirement plan.This arrangement allows you to act immediately on investment decisions, and eliminates both processing delays and transaction or per-asset fees for each investment.  

Get liability insurance (umbrella policy).

None at all, just a good umbrella insurance policy?

If it's just SFR, I would question whether you want to even do an LLC as opposed to just a sole proprietor with a massive umbrella policy $1-$2M.

If you desire to have an LLC, then usually you would umbrella about 5 properties per LLC.