@Nerissa Marbury if there is a claim of tenant negligence or a liability suit involving the 3rd tenant, who does not carry the insurance, the policies of the other 2 tenants will not provide coverage to you.

The title company was that negligent.  

If the residents really want to, they can check into a hotel.Not to mention the cost of having to monitor and enforce compliance, which still has to be done because if they fail to and people start getting hurt, they could be said to have been negligent.

Is there any way to prove that negligence of the tenant was the cause of a break-in?  

It benefits his record as a renter, and the tax consequences to me for his share of the rent after all of the applicable expenses, deductions, etc. is negligible.

He would have to PROVE damages and negligence on your part, and he has neither.

Also, I suggest if you are getting frequent charges, to enquire whether or not the tenant is being charged for things that are broken due to their negligence. 

No bars on business windows etc.Crime maps are pretty negligable. 

But that may make you negligent in finding some way to prevent a foreseen accident.

It may make sense to go the LLC when you start to get assets in the several millions, then the $800 is a negligible expense.