Closing on my first SF rental in ~3 weeks. Haven’t established an LLC to satisfy rate incentive requirement. That said, what’s my best bet, umbrella insurance or landlord insurance? Goal is to protect myself rom personal liability, getting sued etc. Appreciate any feedback. P.S previous feedback on my earlier posts were very helpful! Thanks!

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I was advised to use umbrella policy until I hit 4 or 5 properties.

But everyone’s situation is different. I’d suggest trying to find people with similar net worth in your state that have owned rentals for 3 to 5 years and bounce ideas off of them. Each state will have different laws and policies around LLC’s and liabilities, so finding a fellow investor in your state will be a better fit than just talking with random fishies from who knows where…

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That makes sense. Thank you.

High Umbrella. Liability can pierce the vail of an LLC

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The cost on the landlord policy is way less and an umbrella. An $2M umbrella will be like $600-$800. You already have to have a landlord policy for he property itself. I think adding $2M liability on my landlord policy was $20. Also, my property is owned by my trust. My insurance covers me as the insured and the trust as an additional insured.

That makes sense. We will also eventually structure ours within the trust as we grow. Thank you.

Can someone be kind enough to explain this to me like I’m 5. I’m about to close on my first rental and I’m looking into insurances. What should I do?

Ohhh I was able to get a quote for a landlord insurance with liability up to 1mm and an additional 1mm.

We got insurance on our rental with 1m coverage without umbrella

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