8 properties, All Cash.. INSURE HOW?

Question

I have 8 properties all paid for in cash, my current $1million UMBRELLA insurer (gecko) says I can only have 4 rentals max...

Do I....

A)  Just get a second $1million Umbrella Insurance to cover the other 4 properties

or

B)   Put the other 4 properties into INDIVIDUAL LLC's and up either up each  limit to $1million, or keep at current limit, and just get a second $1mm  Umbrella BUSINESS Insurance..

or

C) other option?

I'm heavily leaning toward option A since LLC/Business Insurance rates seem higher.

Is there anything wrong with having 2 Umbrella Insurances?

Thank you.

Mike Kalob · Answer

Thanks I found one insurance with no limit but they need all properties to be in one state, which isnt the case.. each property currently has individual 300k policies, but I prefer Umbrella to LLC route since, its cheaper and is a "catch-all" so I don't have to up each individual property's coverage to $1mm a piece, which ups the premium.

Jeff B. · Answer

A) will encounter the same objection, too many properties.

Consider refi and thus get insurance on each separately and get the landlord addendum of extra liability coverage.

Otherwise, (B) you need a separate entity for groups of 1-4 properties

Caveat:  unqualified opinion of the respondent - - seek professional advice.

Mike Kalob · Answer

PS, for those with multiple rentals approaching 8 - 10++.. what do you guys do?

Most umbrella insurers have a cap on number of rental properties - around 4 - 7 max.. thanks