Umbrella insurance a wise choice for realty investors

Must title to properties be held in an LLC to qualify?

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DEAR BOB: Thanks for your recent suggestion that homeowners and realty investors with a net worth over $1 million can save money with an excess coverage "umbrella liability" policy for $2 million or $3 million at very low cost. However, when I contacted my insurance agent about getting an umbrella policy, he said I must first form an LLC (limited liability company) to hold title to my investment properties. I called several other insurers and they do not require holding title to investment properties in an LLC. However, they all require I give them my homeowner's, auto insurance and investment property insurance. What is your opinion of LLCs? --Charles G. DEAR CHARLES: Many real estate investors hold title to their investment properties in an LLC to limit their liability. An LLC offers the benefits of a corporation without the disadvantages. Consult a local real estate attorney to discuss the LLC pros and cons. Purchase Bob Bruss reports online. But I have never heard of an insurance c...