Insurance proceeds are typically provided in a check that must be endorsed by both the policy holder and the mortgage holder. 

@Casey Ram older homes generally have more expensive insurance.

If 1099, why can't he get his own liabilty coverage?

Now I want to protect myself from any potential lawsuits from them.I'm debating between an umbrella insurance and a LLC.

Quote from @Dyllon Gibbs: Hi All,Does anyone have experience with rent guarantee insurance and any specific companies?

I would ask the insurance company for more documentation on the reasoning. 

If your insurance coverage isn't enough, they could seize the LLC assets but not your personal assets.Additional thoughts:1.

I came across some critical information today that I think is important to share with you:In the aftermath of the LA fires, it has become evident that some homeowners’ insurance claims have been denied or disputed because the property title was held in a trust, but the insurance policy was under the individual homeowner’s name.This serves as a valuable reminder to review your insurance policies and ensure that the ownership structure on your property title matches the named insured on their policy.

A company out of Canada I think that says they do placements for insurance companies for displaces families. 

We've never even had a tenant try to sue us over a security deposit dispute.For the last 10+ years, I have occasionally asked for just one example of an investor that was sued, lost, and the judgment exceeded their insurance coverage.