However, insurance is limited because it only protects you from one type of liability: accidents/negligence.

If they waited an unreasonable time before initiating those steps, or were otherwise negligent, they MAY be liable to some extent.

Sure, using a turnkey is not as profitable as doing everything on your own, but if you are a longterm buy-and-hold investor I think the profitability difference becomes negligible over time.

Once I got in to stable employment post-crisis, it only took me a few years to get those student loans to a negligible monthly payment using this strategy.

If you are negligent, like leaving water running in a bathtub upstairs that floods 3 floors and causes damage, your rates do go up.  

The rare cases where the landlord is held liable usually includes some sort of negligence on the part of the landlord, like failing to properly maintain a gate and the dog got out. 

If nothing else - I want him to return 4 months of 'management fees' he deducted from rents received for his services - mostly since he has not abided by our contract and has failed in his responsibilities.Our contract states: "Agent shall not be liable to the Owner for any loss or damage not occasioned by Agent’s own negligence or failure to comply with its obligations."

***In India, where the apartment is located, rental income is negligible ($200 is what I can get a month ), but property values rise way faster than USA. 

Even if the effect is negligible and marginal, I am curious if obtaining a HELOC does, in fact, have a negative effect on someone's credit and score.  

Someone else's negligence becomes your problem, associations are often poorly run, and assessments can hit hard out of nowhere.