Reply to Forming an LLC to use to "house" rental property

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[quote=Anonymous][quote=Anonymous]Do you just want to transfer your current house to an LLC once you start renting it?

If that’s the case and you own it free and clear, that’s perfectly fine and very easy for an attorney to handle. If you have a mortgage, you can still do the transfer, but there is something called a due on sale clause and the mortgagor could call it due. They would mainly do this if you currently have a low interest rate because they know they can lend the money at a higher rate.

I would consider just holding in your personal name and getting a large umbrella policy for about 1,500 per year for 10 million policy.

Feel free to post any more questions and I’ll try to help. [/quote]

Umbrella policies have limitations on how many properties you own, it's not a lot and it includes your primary home and vacation home (if you have one) too.  They also may require OP to get a landlord policy anyway and only then umbrella policy kicks in. It is not meant to be primary insurance, just something to augment your primary insurance. [/quote]

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