I also wonder, since the article mentioned it, if the insurance claim will be challenged by the insurance carrier due to negligent oversight of the office.

Your insurance might not cover the claim and the tenants could claim  negligence against you.Good luck .

My agent told me either the agent they used is an idiot, or they didn't used one, like calling GEICO on an 800 number.When you start out, the LLC would make it harder for you to get a mortgage, and in some cases, insurance.The theory behind suing you personally in particular is when you self manage, and you are personally negligent, like not shoveling snow fast enough after a snow storm.

The compressor is the component that their negligence in over-looking a very clearly defined agreement in the lease was cause to fail.  

While I'm not quite a landlord yet, I don't think you actually owe the tenant anything technically unless the backup is due to your direct negligence or a failure to repair something in the property.   

Personally I think it is appropriate Karma that they pay for the benefit of such an outrageously low tax assessment with loosing the property due to their own negligence. 

Every little thing can be sued over and if it is negligence E&O doesn't cover it.I am a full time agent, so I deal with other agents all the time. 

This (theoretically) isolates each asset, so if a lawsuit occurs, and there is no personal negligence on your part, only that one asset is exposed to any judgement.The more legal barriers you put up, the less attractive you are to plaintiff attorneys and litigants, as long as the barrier is legally defensible.As an example, consider two possible lawsuits with the same liability risk; one defendant has $2 million in assets owned  him personally;  the second defendant has $1 million in fully creditor exempt retirement account, $500k in his homestead in a fully exempt homestead state like Texas or Florida, and the balance of his assets in Series LLC. 

If some one dies in a fire and there is no working detector the landlord can be facing very serious charges of negligence resulting in death.This includes situations with no detector, dead batteries and removed batteries.

At this point I tell the tenants that the mice are coming in due to their negligence and I will split the cost of exterminator.