commercial umbrella policy

[Joanne Tsai]

Hi BPers, 

We have just made a purchase which is our 11th property, yah!

For the first 10 houses (all residential single family homes), we would get a typical landlord insurance policy and our properties are owned in either my husband or my name (not through an LLC). In addition, we have a big umbrella policy.

So, as I was getting an insurance quote for this 11th property, we were told, our personal umbrella policy will only cover up to 10 properties, and anything beyond that we will need to get a commercial umbrella policy. Though the 11th property is also a residential single family home that we intend to lease out. 

After being transferred multiples, finally the agent told us, we need a 1 million liability policy for our 11th house in our landlord policy before they are willing to issue an commercial umbrella policy. She cited examples of potential beam collapses and 1 million dollar is a reasonable amount of liability to carry. I mean, this house is barely 1000 sq ft, and I have to buy 1 million dollar liability in order to get an commercial umbrella insurance? 

has anyone ever encountered situation like this? is there any workaround or advice?

Thanks in advance!

Joanne