Insurance coverage - worst case scenario - Proper Insurance

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This is not just another insurance question as the many that have been posted that I have already read through.

My question is about liability and protecting yourself with insurance coverage on personal bases and not through any type of corp or LLC.

My wife and I are ready to start seriously looking for a REI's that will be flip properties, that are never going to be occupied in the number of months it takes to rehab and sell. However, since my wife is a personal injury attorney, she knows how claims can venture across multiple individuals and multiple insurances.

So our main concern is getting the proper and enough insurance coverage to head off worst case scenario. First off, I know that it is always up for grab when it comes to insurance claims, and you can't predict to a certainty the way a claim might go. I also know that setting up LLC's would help to add another protection to the castle. But currently, we don't have an LLC and will not be putting one together until at least one flip has taken place.

If we were to have a $200,000 in liability on the rehab property, but an extreme case was to occur such as a someone working on the job was to get killed on the job, that $200,000 wouldn’t cover enough, and it could easily got to a jury that could award a lien against our personal property. Furthermore, we are having GC do the work, and yes, we will be making sure they are insured, along with making sure that all subs are insured as well (if possible). However, again as I mentioned my wife is a personal injury attorney, and she knows first hand, how there might be insurance in place from one entity, but it is a normal activity to file claim against another entity’s insurance just because they were associated. What I mean by that is, if an employee was to get killed on the job, and it was the fault of a subcontractor’s negligence, the attorney for that family could easily put claim against the GC that employed the deceased (who had insurance coverage/work comp), the subcontractor who was negligent and the owner of the property.

So, can anyone give us advice as how we should go about insuring a property correctly, for enough, and any run down’s of how they insure their property? Or do most people assume that the above worst case scenario won’t occur and they just don’t insure for that type of situation, more or less getting coverage just to have it??

Thanks in advance for reading this long post.

NOTE: We have checked with our current personal property insurance company, and they don't write umbrella policies if "vacant" properties will be involved. I don't lie and say a tenent will be there when they won't. So it appears that either we will have to take an individual policy on the property, or find a company that will write umbrella policy that allows vacant properties (I don't think this is an option).