All Forum Posts by: Thomas Memoir

Thank you. Yeah that's why now I'm leaning the other extreme, toward a commercial policy structure—commercial GL + umbrella sitting over the LLC—to remove the ambiguity. Not cheap, but feels the better way?

Thanks for chiming in - at last a brave one :)

Really appreciate your input. I've been digging into this pretty deeply across multiple brokers, and it's clear that there's no single "definitive" answer—especially when it comes to LLC ownership and umbrella coverage.

The personal DP-3 + personal umbrella setup is definitely the most common, and I know some carriers will endorse it for LLC-owned properties. But I've also seen that many personal umbrellas exclude LLC liability by default, and there’s real uncertainty about how claims play out if the LLC gets sued directly.

That’s why I’m currently leaning toward a commercial policy structure—commercial GL + umbrella sitting over the LLC—to remove the ambiguity. It costs more, but seems to offer more clarity and less exposure, especially as I grow the portfolio.

VERY open to learning from people who’ve seen actual claims under either structure. Thanks again for weighing in!

I've been digging into this more. And I'm surprised how much advice varies—even among agents. Hoping to get input from others here. Key: Property is owned by single member LLC.

Two common setups I’ve seen:

1. Personal landlord policy (LLC + individual named) + personal umbrella

2. Commercial property + GL + commercial umbrella, all in LLC's name

For those holding rentals in an LLC:

Which structure do you use?

Have you seen personal umbrellas actually cover LLC liability?

Any claim experiences or guidance from underwriters?

My main goal is protecting personal assets, especially as I grow the portfolio. Would love any insights.

Seems like you definitely would recommend commercial umbrella? Because my landlord insurance is on a personal line policy and lists the LLC (and me) as insured; hence agents have either struggled or straight-out told me I should get personal umbrella. Which I dont think makes sense?

Thanks for sharing your perspective—it's appreciated. My primary concern is safeguarding my personal assets. Given that, I'm trying to understand the implications of different insurance structures. 

If a personal lines policy (like FL-3 or DP-3) lists an LLC as the Named Insured, does this configuration reliably protect personal assets in the event of a liability claim against the LLC?

Are there personal umbrella policies that effectively extend coverage over LLC-owned rental properties, or is a commercial umbrella policy necessary for such scenarios?

Hi friends - I have a property in a single-member LLC and want to add umbrella on top. Now my understanding tells me I should get commercial umbrella. But since the underlying landlord insurance has myself as well as the LLC as named insured, most agents seem confused.

I should be able to get commercial umbrella for this, right? I have had agents tell me straight up that personal umbrella is fine, but I dont believe it actually would cover damages arising from the LLC-owned property. What is your experience and advice?

(and yes, I know that LLC alone is a hot topic, and some will say umbrella is over-kill -- in that case, please just ignore this post. All others, please help!)

Thank you!