Rental Insurance Question - How much is enough / reauired?

[Steve S.]

My property manager has verbiage in their agreement that states:

"At all time during this agreement, Owner must obtain in effect a public liability insurance policy that names Broker as co-insured or additional insured and covers losses related to the Property in an amount of not less than $500,000 on an occurrence basis"

My policy 1) doesnt have the Broker added yet and 2) is for only $300,000 (plus the cost to replace the home which is about $170,000)

My questions:

1) is it common to add a broker (i.e. the property manager) to my policy

2) Is $300,000 considered too low?  Should I go ahead and up it?  It's $24 / year to up it to $500,000 but ever nickel and dime matter.  

3) would you have had it higher than $300,000 anyway?

Thanks in advance!