A slip and fall of child or hi earning person where the insurance does not over the cost of the injury or possibly a death, they could come after you personally. a car or plane crashing into the property that would be in excess of the insurance that you purchase.

Then come to find out the owner was responsible for substandard repairs, performed by unlicensed, unqualified people that caused or contributed to her injury.

There are jurisdictions (parish to parish here) that have very different attitudes toward landlord vs tenant situations.There are reasons why LA is where it is on this list:http://www.instituteforlegalreform.com/statesYour tenants are immersed in advertising (billboard, TV, radio, etc.) to  pursue legal action in the event of any accident, injury or incident and with "hungry" attorneys everywhere you turn, you will have to defend yourself sooner or later.It sounds like your father-in-law is great for the role you want him to play.  

.- Workman's Comp:  This will cover injury/death to your contractors on the job. 

I also want them to have coverage because if something really bad happened, like a major injury or death to a tenant, I imagine that their family would start suing everybody (owners, manager, contractor, etc.) and would go hardest after those who they think are most capable of generating a payout, i.e. the insured parties. 

Some optional coverage that may be valuable for you (depending on the propery):- backup of sewers & drains- Ordinance & Law (if building codes require rebuilding differently)- Personal Injury (Liability for Libel, Slander, ...)Non Insurance Risk Management ideas that you can look into are:- review your contracts- require Tenants to have a Renters policy- look at advantages of LLC for each property- Pet policy (many companies will not write policies if certain breeds of dogs are at the property)

It might be cheaper to do owner builder how ever you have to subcontract to licensed individuals and again your responsible for their injuries etc.

Just want to get your views on these options.Company A:Dwelling coverage amount / deductible - $409k / $5,000Personal property coverage amount / deductible - $20.5k / $5,000Loss of Rents coverage amount - $40,900Premises Liability coverage amount - $1,000,000Landlord Personal Injury coverage amount - $1,000,000Other items from Company A:Medical Payments $1kOther Structures $5kTotal Premium = $100TOTAL premium = $979Company B:Dwelling coverage amount / deductible - $498k / $1,000Personal property coverage amount / deductible - $22.5k / $1,000Loss of Rents coverage amount - $99,663Premises Liability coverage amount - $1,000,000Landlord Personal Injury coverage amount - $1,000,000Other items from Company B:175% dwelling extended replacement costBackup of sewers and drains $3,000Bed bug infestation remediation coverage $2,500Medical payments to others $5,000Personal property and theft $2,500Landlord eviction reimbursementTOTAL Premium = $1,019Company A appears to be a “basic form” but for B I think it is “special” because it seems to include some other things (e.g. theft).

I am 60 years old now and I am still recovering from my injuries and I spend a bunch of learning since I am currently stick at home.  

Internal liabilities (issues within the LLC such as an injury on one of the properties) must be insured against.