The "50% rule" lumps vacancy, all actual operating expenses (debt service is not an operating expense), and all capital expenses (like a new roof) under the one "50% of rent" umbrella.

You can make new LLC's under the umbrella (original) LLC.

Will an umbrella policy adequately cover me if not?

A blanket umbrella policy of $1MM might accomplish what you need until you start building some major equity/assets.

An LLC can add some liability protection, but so does an insurance policy along with an umbrella policy.

In many states, single member LLCs do not provide this kind of protection.If you are the only member of the LLC the court can and often does seize assets from the LLC to enforce a judgment.The best way to protect yourself from personal liability is...1) Don't screw people2) Maintain liability insurance - an umbrella policy is very cheap.YMMV of course.

An umbrella means that your various loss exposures are all put under the same umbrella, not that you need a separate umbrella over each exposure.Unless you also have an umbrella over each of your vehicles and boats, I'd say you're UNDERinsured.Look at your net worth, assets minus liabilities, that how much liabilitiy insurance you need.

I've read every thread in here on LLC's vs umbrella liability insurance.

Under the Dynamic Hospitality umbrella also operate Joanies - our cosmeticeutical manufacturing and distribution company and Triston Wade & Company - a creative communications firm specializing in outsourced design and production services for advertising agencies worldwide.In 2009 Corporate Offices will be relocated to Vancouver, Washington and Nashville, Tennessee.

What you need to do is get an umbrella insurance policy to protect your LLC.