Good insurance, particularly with an umbrella liability policy provides very adequate protection on smaller assets. 

One thing you may want to consider is some sort of umbrella insurance - that might be a cheaper option, I'd price out bother.

Regardless of which state you choose, be sure to maximize your liability on your renters policy and get an umbrella - this will protect you more than any LLC will. 

For added security, consider umbrella insurance alongside the LLC. 

Does anyone have a personal experience where they were sued for such an amount that umbrella insurance kicked in?

My market also has this issue but I suspect less than Florida but my umbrella cost doubled last year.- as yet unknown impact from required structural inspections (bill 154).

That’s what I’m talking about.. having people on the ground who know their turf and can spot trouble before it smacks you in the face.From what I’ve heard, outfits like Northwest Preferred Property Management or Umbrella Properties in Eugene aren’t just running the numbers.. they’ve seen the weird mid-season repairs and the tenant personalities you’ll never read about in a textbook.

I have a few dozen rental homes, and I've found that the only master umbrella liability policies my agent can find now require $1 million underlying liability coverage on the landlord policies.

I'm also adding an umbrella policy, so thank you all for the suggestion. 

Insurance would cover it, I would pay the deductible, and no assets would be lost.If you are in an area like San Diego where people are more likely to sue, a judge is more likely to find you guilty, and the payout is expected to be higher, you may consider an umbrella insurance policy.