LLC Commingling Question

[Sand11]

First off, Id like to introduce myself as a long time reader and first time poster. Ive benefited greatly from a lot of you over the years, so I'm very appreciative! Getting to the point,  I recently set up a single member llc for my rental properties and I'm just wanting to make sure I'm doing things the correct way. Im well aware of not mixing personal and business expenses and keeping everything seperate, but when it comes to expenses that are shared between business and personal, how do you go about that? In my case, I have a 1M umbrella policy that covers my rentals, both vehicles, and my personal residence. If I pay that policy with business funds, would that be considered commingling since a portion of that premium is covering my personal home and autos? This was pretty simple as a sole proprietor, but the llc has me overthinking everything.

[CareCPA]

Have you formally transferred ownership of the rentals into the LLC name? If so, you should check with your insurance agent to make sure your coverage is still appropriate. They may not allow you to have an umbrella policy that covers both LLC properties, and personal items. Note that I am not an insurance expert, just something that came to mind.

If you continue with the policy as-is, I would pay it out of personal funds, and then have the business formally reimburse you for the portion allocated to the rentals (you may need to come up with a "reasonable method" here if there isn't an easy way to break it out. Maybe relative values?).

This may be overkill, but I'd rather over-document than under-document.