Let's say you have a car accident and you cause damage worth 400k because you rear end a Ferraris push him under the Lambo in front of him and manage to destroy both. 

I read that horrific thread last night but I was unclear if the occupants were the former owners.

Note that you can end up forming partnership with another by accident.

(By accident).

You'll only be able to get liability insurance to cover accidents at your place of business, NOT at properties you manage.To cover liability issues at properties you manage you can either:1) Have owners add you as additionally insured to their policies.2) Provide your clients with a blanket commercial policy you add them to. 

So even if you pick a state with stronger protections like WY or NV, the cause of action arose in the state where the tenant fell, so likely that the court where the accident happened would have jurisdiction.California tends to have more laws on the books and requirements and restrictions that it can be a good idea to form a CA LLC for out of state property so that you as a CA resident are covered, and to try to have your contracts fall under the purview of CA courts.

Sorry hit reply by accident. 

Requiring renters insurance protects you from expensive renter accidents, injuries on your rental property, and costly lawsuits that can easily pop up in the landlord business.Hope this helped! 

Lived in it for over a year while house hacking (on accident).

However, by accident/experiment, I've learned that it is ridiculously easy to give a horrible hardwood floor with a million coats of old finish on it a quick scuff sand and a paint.