It has 500K coverage for each occurrence, 500K for personal injury and advertising injury, and 1MM general aggregate.

Unfortunately they financed their education with debt that can't be discharged even in a bankruptcy and many if not most can't find full time work in their chosen fields.Plus to add insult to injury, what ever they do manage to save for a down payment earns zip thanks to the Fed's ZIRP (that the Fed find themselves trapped in).

The big problem is that someone will do something crazy and cause injury or worse.  

In other words, you keep your personal and business assets separate so that if your business incurs a liability (for example, a judgment against you in a personal injury lawsuit arising from a claim that an unsafe condition at your property caused the injury), your personal assets are insulated from being liquidated to satisfy this judgment.Many RE investors keep each house in a separate LLC.  

-Property and casualty Insurance for the property itself insures you for things like fire and storm damage (this doesn't really have anything to do with getting sued, but is obviously important)-Maximize your liability coverage on your homeowners policy (liability coverage insures you against wrongful death, injury, or scarring of someone on your property).

That said, generally speaking in most states, LLCs and other business entities do not shield you from personal liability if you personally had knowledge of, or were personally engaged in, the conduct that causes an injury.

Most likely the state where the property is located is where lawsuits would be brought if they are something for personal injury like a trip and fall or something of that nature because the “cause of action” arose in that state.

You'll also retain liability for any injuries on the property since you're the record owner.FL Bar #86224

Most likely the state where the property is located is where lawsuits would be brought if they are something for personal injury like a trip and fall or something of that nature because the “cause of action” arose in that state.

If the inverse is true, they owe 200K and its worth 300K but they can't make payments because of a loss of job, injury etc, then perhaps a deal could be made that allows them to get some the equity out, and keep a foreclosure off the books.