Umbrella and liability insurance

[Zaid Badabwan]

I have 4 rental properties and have 2 separate liability insurance policies. I would like to know

1. Difference between umbrella and liability insurance.

2. Do I have to buy liability or umbrella insurance for each property? or one policy will cover all four?

3. Do I buy the umbrella or liability insurance in my name or in the name of the LLC of the property?

I would appreciate your answers and experience.

[Jason Bott]

Originally posted by @Zaid Badabwan:

I have 4 rental properties and have 2 separate liability insurance policies. I would like to know

1. Difference between umbrella and liability insurance.

2. Do I have to buy liability or umbrella insurance for each property? or one policy will cover all four?

3. Do I buy the umbrella or liability insurance in my name or in the name of the LLC of the property?

I would appreciate your answers and experience.

1)   Umbrella sits on top of a General Liability policy.  It does not cover more or less, but gives you a bigger bucket of $ to pay claims with.  An Umbrella can also go over multiple General Liability policies, although some insurance companies only like to go over their own policies.

2)  You need to have a General Liability policy before you can buy an Umbrella policy. 

3) The entity that owns the building should be listed as the "Named Insured" on the policy. Insurance policies will have language within the policy stating owners of the Named Insured are also inculded as Insureds. So, if the property is in a LLC, and you own the LLC, you will have automatic coverage under the policy.