My understanding is that if the property is in your name you can get an umbrella policy.

I do not want this transaction to fall under the umbrella of an agent buying a property without disclosing all the info to others involved.

A comprehensive umbrella policy is cheap.On casualty coverage, 12 units isn't a statistically large enough pool to safely self-insure.

I would talk to a professional but good umbrella/liability insurance should substantially reduce your risk if you purchase without an llc.

A good umbrella insurance policy is a better 1st step than forming an LLC in many cases.

Say it was a 2 bed unit and a family of 4 wanted to move in with 1 boy and 1 girl child, you cannot say no based upon the kids having to share a room, again that is under the familial status umbrella and up to the parents how they will deal with the sleeping arrangements.

Like forming another umbrella LLC.

I can pay $300 more per year to get that to $1.5M using the umbrella/excess insurance policy.

As you add to your rental portfolio, you may want to look into an umbrella as well.

A lot of people are under the false impression that management companies assume the liability here, or that their umbrella policy will kick in for their neglect or lack of construction knowledge.