None at all, just a good umbrella insurance policy?

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

You might consider an umbrella insurance policy (maybe $1M) to protect against law suits.

I was thinking of just doing a $1 million umbrella over all of my assets instead.Also, how does the cashflow get taxed as I have heard if you do it correctly you should pay almost no tax on your cashflow?

I own five single family homes in the Twin Cities area (Minnesota) and am trying to learn if creating an LLC and transfering these five houses to the LLC is a good decision and worth the time and money for such a small portfolio.I currently have a $1M umbrella policy with my home owners insurance company but am wondering if one additional layer of protection would be prudent.If I should create an LLC, should I create one for each property and another to hold the five LLC's?

@David Hansen as with most personal lines companies, USAA policies start to run into problems for the following;*More than 20 Locations*Mixing personally titled policies with policies under an LLC*Limits to the # of rentals thier  Umbrella policy can go over*out of state rentals For a handle full of rentals, you should not have any issues.Good luck with it

Does anyone know if an umbrella policy would have covered you against the lawsuit in this matter?

You also need duck feathers and an umbrella; you need to let things like overdoses, police visits, prostitution, underage drinking, breakage, theft, accidents, lawsuits and other common things like that slide off your back. 

That's in place both in the areas of the property and personally (property, umbrella, etc).

Can someone list the benefits/cons of LLC’s and Umbrella Policies?