The garages and other non-residential spacehave negligible NOI impact.  

I agree with @Derek Lacy, we carry 2M of liability coverage because the cost difference between 500k, 1M, and 2M was pretty negligible and if something did happen, I'd rather be overprotected vs under protected.

Conversely, adding a 2nd, 3rd, or 4th property to your Memphis region creates a negligible increase in the time you have to spend addressing the properties.  

A $1mm umbrella will cover you for the most part and in a worse case scenario, you might have to cover something, but I don't know that I have ever heard of a judgment of six figures in a landlord case without gross negligence or actively doing something illegal where an umbrella policy wouldn't help you anyways.In 19 years and more than a dozen tenants and 2 evictions that went all the way to changing the locks with there stuff still in the unit, I have never been sued...knock on wood.

Second no LLC or corporation will save you from your own negligent or tortious act you do personally.

Also, can they deny the claim saying it was negligence since it has been going on for a few months now (the tenants never informed me till late last week).Thanks.

Renters insurance also provides liability insurance for you tenant...very important and potentially beneficial to you as the owner, as 60% of property claims are caused by tenant negligence...

What about a lawsuit for your negligence?

Trust me for us up here the taxes you pay are negligible.

Negligence?