Anybody can sue for anything, so always document everything before, during after withbthese types of incidents, and what I mean by nefore, video or take photos of everything prior to the tenant moving inWe live in a very litigious society.

@Matt P.If you have a traditional landlord policy on your rental, you are NOT covered for liability arising from short-term rental incidents.

They will tell you of the crime incidents in the past few years. 

http://status.podio.com/incidents/bc2wpklx243l

After talking with my insurance agents, it seems you are right that only the contractor's insurance can cover these types of incidents.

As far as the subrogation process, my claims adjuster told me that he had two of the same incidents come up before (leaking toilet I think) where one insurance company denied the claim and deductible repayment for one incident while the other insurance company paid everything out in full.

It won't take many of those type of incidents to make the other tenants move.The other issue is that you may be in just as much trouble with the city for the overpopulated apartment as the tenant if the city can prove that you knew about it and did nothing. 

With relative certainty I can almost guarantee my renters will not have drunk celebrities at my properties :)  The mail person one always gets me, it would seem that it would have to be a tendon severing incident to get the medical bills that high and it would also be a workman's comp claim as it was an injury on the job.... 

(that's happened multiple times)Tenants firing guns in the air during Cinco de Mayo celebration (small city lot, pretty good tenants outside of that incident)Tenants threw a couch through another tenants 2nd story dining room window.Tenant found in their underwear, murdered, handcuffed & a bag over their head.Brothel ran out of an apartment building.

They refused to do it and when I went to get insurance quote from another company a year after this incident, they refused to write the policy because of this claim.