Property in personal name but rental agreement via LLC?
I have a property with an accessory apartment (I live in the main house) and 2 investment homes that I want to rent out... the properties are in my personal name but I want to make the rental agreement with three seperate LLC's that are subsidiaries of a NYS S-corp that is taxed as personal so everything would flow to a schedule E, so im not doing this for liability purposes but to streamline banking and record keeping processes on each property. I have mortgages on all the properties and the lenders will not allow a title transfer to LLC's even if personally guaranteed.
Since I cannot transfer title to LLC I have $1MM liability on each homeowners policy and they know I will be renting. I would like to add another $3MM personal umbrella. All of the leases have indemnification clauses but I would like to protect my assets as best as I can with this structure as it is. (yes I learned my lesson and will purchase the next property differently)
My question is....will the my personal umbrella insurance protect me personally in the event of a loss related to the rental in excess of the homeowners policy if the lease and the rent is collected by the LLC. The umbrella policy specifically has no endorsements for "business activities" and the properties are located in New York. Would this be considered a "business activity" if I use the LLC?