Looking for help building an asset protection plan for my rental properties

Bronx, New York
Legal & Legislation
1dFollow

Looking for help building an asset protection plan for my rental properties

Raza Rizvi
Rental Property Investor · New York, NY · Member since 2011 · 101 posts · 10 votes

Hi everyone,

I own multiple rental properties. Some are held in an LLC and others are in my personal name, mainly for mortgage reasons since they're financed in my name. All of the properties are insured, and I also carry an umbrella insurance policy.

I'm looking to better protect myself and my personal assets in case of a lawsuit, and I want to find someone experienced who can help me come up with a proper asset protection plan. A few questions:

- Does it make sense to move the properties in my name into an LLC, or are there better structures?

- How much protection does an umbrella policy really provide on its own?

- Can anyone recommend an asset protection attorney or firm that works with landlords, ideally in New York?

Appreciate any guidance or referrals. Thanks!

0Reply
132 views

8 Replies

Jump to latestLatest
  • Vaibhav PuranikPro Member
    Member since 2025 · 109 posts · 57 votes
    1d

    You can buy umbrella policies of different coverages. Higher coverage will cost more. A simple rule of thumb I use is get an umbrella coverage equals to your net worth. If your net worth is $5M, then get $5M policy. Again it's a thumb rule, if that' too costly, get a lower coverage. Umbrella policies are a cheap way to secure your assets in my opinion. I really think going to asset protection attorney is not the right step unless you are too big and your cashflow can afford it. They always recommend complicated structures and those structures require cost to setup as well as to maintain. LLCs come with annual paperwork and taxes. I am from California and I own 15 units without LLCs. My rest of the properties are through syndicated LLCs so that's a different ball game.

    [email protected]
    0Reply
  • Raza Rizvi
    OP
    Rental Property Investor · New York, NY · Member since 2011 · 101 posts · 10 votes
    1d

    @Vaibhav Puranik thank you for your insights. My umbrella insurance is limiting me to 4 properties. How do you handle 15 units under it? Any feedback would be greatly appreciated.

    0Reply
  • Vaibhav PuranikPro Member
    Member since 2025 · 109 posts · 57 votes
    1d

    Just find another Umbrella insurance! I had this issue as well, so found another umbrella insurance. Didn't do it myself, my insurance agent did it. Interestingly, it's not a full umbrella, to save cost, my agent decided to exclude driving liability from it, which I am fine with because all I care about it the liability originating from the properties.

    [email protected]
    0Reply
  • Owen RosenBusiness Member
    Professional · Clinton Township, MI · Member since 2015 · 694 posts · 262 votes
    22h

    Insurance agent here: that four-property cap is one carrier's rule, not an industry limit. Plenty of carriers write landlord umbrellas for larger portfolios, or you can put a commercial umbrella over the LLC. Just make sure every rental's liability limit meets the umbrella's minimum and the LLC is listed as a named insured, or you can end up with gaps. Your attorney sets the structure, and your agent should match the coverage to it.

    Royal Oath Insurance Group4.9208 Reviews
    WebsiteView Page
    0Reply
    • Raza Rizvi
      OP
      Rental Property Investor · New York, NY · Member since 2011 · 101 posts · 10 votes
      10h

      @Owen Rosen do you handle properties in NY or just MI? Please let me know. Thanks

      0Reply
    • Owen RosenBusiness Member
      Professional · Clinton Township, MI · Member since 2015 · 694 posts · 262 votes
      7h

      Not Just Michigan but we don't write property insurance in New York unfortunately

      Royal Oath Insurance Group4.9208 Reviews
      WebsiteView Page
      0Reply
  • Ametria Chaney
    Realtor · Memphis, Shelby County · Member since 2026 · 248 posts · 85 votes
    7h

    Good questions, Raza — and smart to address this before you need it rather than after. A few practical thoughts from the transaction side: an umbrella policy is a great first layer, but it's defense funding, not a wall — it pays for claims and legal defense up to the limit, which is why matching coverage to net worth matters. LLCs can help separate liability between properties, but transferring mortgaged properties into an LLC can trigger due-on-sale clauses, so that move needs a lender conversation and an attorney's guidance. The most valuable step you named is the third: a New York asset protection attorney who works with landlords can look at your whole picture — entity structure, insurance, and how your properties are titled — in one sitting. Worth the consultation fee.

    0Reply
  • Divin KanyamaBusiness Member
    Accountant · Seattle, WA · Member since 2025 · 640 posts · 268 votes
    7h

    @Raza Rizvi Good on you for thinking about this before you need it. I’m not an attorney, so take this as general experience and not legal advice.

    On moving properties into an LLC, it's common, but don't just sign a deed over. If the loans are in your name, transferring title can trigger the due-on-sale clause, so talk to your lender and attorney first. Some people leave financed properties as they are and rely on insurance, while others get lender approval. Also, an LLC only helps if you run it properly: separate bank account, clean books, and no mixing personal funds.

    As for the umbrella, it’s a great layer, but it has limits. It only pays up to its cap, and it won’t cover everything a lawsuit could involve. Insurance and an entity work together, so I wouldn’t rely on just one.

    For a New York attorney, I'd look for someone who focuses on real estate and asset protection for landlords, and ask them how they've handled lender consent and New York's LLC rules. Your local bar association referral service and other landlords in your area are good places to start. I can't personally vouch for anyone, so ask for references.

    [email protected]
    WEMBO CPA532 Reviews
    WebsiteView Page
    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free