An umbrella policy provides excess liability coverage above and beyond your underlying policies for those worst case scenarios.

I set aside a large portion of my excess income that I use for investing.

I charge each unit an additional $25 per month and just eat excess water charges if any.  

You could charge them 1/5 * $1000 = $200.If damages exceed the deposit, and you're confident they will stand up, you can send them a bill for the excess. 

I just did a drive by today and noticed my tenant is storing an excessive amount of household items in the yard, including indoor furniture. 

So if you're investing in multiple deals, you'll need to gain some understanding of the markets, review sponsor track records, verify their financials projections make sense and that they're using reasonable assumptions, make sure the fees aren't excessive (fees vary for each deal).

It absolutely was a win/win: Taxes went down well in excess of the fee charged.

11:  Excess Funds12:  Redemption13:  Void Tax Sales14:  Tax Deed15:  Improvements to Tax Sale Properties16:  Renting Out Your Investment17:  Flipping18:  Earning 12% Interest19:  Ejectment20:  Quiet Title and Similar Actions21:  Buying from Land Bank22:  Tax Sales of Personal Property23:  Attorneys in this Field24:  FormsLast wordsTable of CasesTable of StatutesTable of Other AuthoritiesIndexSome AL investors who I want to be sure see this post include @Helen Kirk, @Jake Roland, @LeArcashei Moore, Account Closed, and I know there was at least 1 person I'm colleagues with on here who doesn't live in AL, but likes to invest in Auburn, but I can't recall who. 

His work is the type where they put excessive sub-woofers and flat screens all over show vehicles, turn a Suburban into a 2-seater with 9 feet of 47billion watts worth of subs, wrapped in flowing body-colored fiberglass with computer controlled LEDs, and make golf carts thump while they cruise car shows.

If you're not borrowing rehab dollars, there won't be excess funds unless you found the miracle lender that'll give you >100% LTV.