TO LLC or NOT?
Hello BP community.
My business partner and I are close to purchasing our first rental in New Brunswick NJ. Recently I had a conversation with an established flipper/investor who recommended not worrying about an LLC for asset protection right now as this would be the first property - an instead purchase an umbrella policy on the property to protect against claims etc should they occur. My partner and i have decent 401k and we dont want to be unprotected. I have reached out to an attorney but while i wait for their response i was hoping for some opinions.
my original thought process was that insurance companies are in the business of collecting premums - NOT protecting you, and often look for reasons to not cover. so his comment didnt sound totally correct.
Anyone have experience using an appropriate (if there is such a thing for investors) umbrella policy in lieu of LLC.
Thanks in advance NJ NEWB