Umbrella Policy Ammount

[Chris Propes]

What are everyone's thoughts on what would be a good amount of insurance to carry with four single family rental homes?. We have had a $1 million umbrella policy for many years along with $300k liability on each property and I am trying to decide if that is enough coverage to make me feel comfortable or if I should bump it higher. The properties are all good quality in nice areas and we are pretty diligent about making sure we take good care of them so I feel that my risk is relatively low but I am curious to hear what others have to say. Any specific examples of suits that have breached the $1 million mark?

I know I can get additional protection with an LLC but so far I have stayed away from that option mainly just because of the potential difficulty for financing future deals and/or transferring my existing properties with mortgages into the LLC.

[Chris Simmons]

Look at prices.  Often it is negligible to bump it up.  Double or triple the umbrella coverage might only cost 10% more.....reason being it is rarely used and even then, used completely.  Just don't go overboard and pay too much to overinsure yourself.  I think I have $3 million right now.