Hello, I've searched the forums for this question but haven't seen it specifically asked. Right now I am a 25% partner in an LLC that currently owns eight rental SFRs. We have a $1M liability policy on each individual property. Would it be helpful for me to personally get personal umbrella insurance to protect me from any lawsuits, or is this not necessary due to the LLC structure and insurance currently in place?
Not sure about that but we were told that the LLC is separate in terms of liability and really the personal umbrella would not come into play for the LLC.
We have an umbrella policy for our LLC and S corporation, not personally. Our insurance agent is based in Illinois so I am not sure if it would help, but he may be able to shed some light on topic for youâ¦847 543 1919 Scott Johnson, Farmers Insurance.
William Powers, RTO Property LLC | 8476724848 | Podcast Guest on Show #185
Welcome to BP.
I would strongly suggest for you to talk to an insurance agent.
I am a real estate broker in Illinois and also have a series LLC. I assert you could get an umbrella policy to protect you as at this point your LLC is insured, but you are NOT.
So, let's say if you decline a rental application and that person sues you (let's assume for discrimination), that LLC insurance will probably NOT cover you. There is something similar to umbrella called "general liability insurance" is what you might be needed.
Hope it helps.
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