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

Bronx, New York
Legal & Legislation
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Looking for help building an asset protection plan for my rental properties

Raza Rizvi
Rental Property Investor · New York, NY · Member since 2011 · 100 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!

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  • Vaibhav PuranikPro Member
    Member since 2025 · 106 posts · 57 votes
    16h

    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.

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  • Raza Rizvi
    OP
    Rental Property Investor · New York, NY · Member since 2011 · 100 posts · 10 votes
    15h

    @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.

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  • Vaibhav PuranikPro Member
    Member since 2025 · 106 posts · 57 votes
    15h

    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.

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  • Owen RosenBusiness Member
    Professional · Clinton Township, MI · Member since 2015 · 691 posts · 261 votes
    8h

    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
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