Insurance does not cover, nor does umbrella coverage.

He also makes sure we have comprehensive coverage.  

Both worth over $1MillionWe've always been insured for $1M in liability.Our broker presented an option for insurance for one property that would be $500K.Do you think we'd be at risk with this level of coverage?

I'm buying the home for 35K and only need coverage for 70K.

@Danny Van- thanks  1) if you have some equity in the property - you might consider getting a HELOC in place now  in case you  want to use any  equity in the future ...Its  easier to get a heloc in place on a primary home as compared to a rental  2) contact your insurance agent and  ask for an  estimate for how the insurance coverage and premium will  change  3) consider  a proeprty management firm if you dont want to  self  manage  4)  get any forms and  processes  in place  (  leases / credit checks / bank accounts/  etc ....)

Hi all- We closed on our first STR literally one week ago and today I was informed by my insurance agent that our homeowners insurance company cancelled our coverage because in their words "A HOME/DWELLING RENTED LESS THAN WEEKLY IS INELIGIBLE FOR COVERAGE."

If there are any red flags on your mom's house, you may want to hold off on the cancellation of her current coverage until the new policy is issued and the company has done their inspection. 

So either buy as an LLC and make sure you dot your i's and cross your t's or buy as an individual and make sure you have adequate insurance coverage. 

Only issue is the debt service coverage ratio is about 1.0 piti (20% down) will end up at about 2400/mo rent is likely 2400-2500.There is some value add work which can be done in terms bringing the finished basement up to fire code so it can be considered living space.What do y’all think.

If your insurance coverage isn't enough, they could seize the LLC assets, but not your personal assets.Additional thoughts:1.