Get the umbrella policy. 

Just make sure that he won't be viewed as an employee in case L&I does an audit, ie one relationship and all spending under your umbrella might be viewed different.

I have to purchase the California Fair Plan as fire ins, but it doesn't have liability, which I will need 300k for my umbrella.

This can be beneficial for a few reasons:Separation of Personal and Business Assets: Moving the property under your LLC’s umbrella through a DSCR loan will allow you to separate your personal liabilities from your business assets, which is crucial as your portfolio grows.

You might get a decent discount for adding the policy to your overall stack.I would also look at adding an umbrella policy to cover the whole shebang.

You may be better off just paying for an umbrella insurance policy each year.

1) Make sure STR is allowed. 2) Get more and the correct forms of insurance to go with your umbrella policy. 3) Skip the LLC. 

But I have done many cooperative assignments, a strategy under the lease option umbrella. 

He should be paying into workman's comp and be the experts in evaluating the level of risk.Do you have an umbrella policy in addition to the property’s policy?   

Fully insuring you properties and adding a umbrella liability policy will probably cover you 99% of the time8.