Our revenues have not dropped due to weather, but if we did get hit hard by a hurricane it could, rather would cause losses in rental revenue. 

We didn’t even get close to where we needed to be to be profitable and closed down after a large financial loss just 2 years later.

However if you don't have a primary policy, or if the original policy does not cover the loss, then the umbrella would not either.

Fortunately I was able to get out of my contract with comparatively minimal loss. 

Tenant-friendly Laws: Strong rent control laws can limit an investor’s flexibility in evicting non-paying or problematic tenants, increasing the risk of losses.

It took another month for them to place the money back in account, after a bunch of phone calls and loss of work....

And when you sell it if you meet the primary residence requirements the profit is tax free.It is possible in many instances to own successful rental real estate that generates real dollars in your pocket but operates at a loss for tax purposes. 

Current CPA says we can't take losses off of W-2 because W-2 income is greater than 240k.

Create a penalty/fee that prevents loss of income.

The goal is to create paper loss and offset your W2/business income.